Effect of Working Capital Management Decisions on Financial Performance

Collapse of companies in Kenya has been on the rise in the recent past. Far reaching endeavors to resuscitate these liquidating and ailing firms have generally been attributed on their corporate financial management decisions. Multinationals and KTDA managed tea firms in Kenya have been performing poorly in the recent past where audited financial statements and reports revealed a warning signal on its financial performance. Specific objectives of the study were to determine the effect of the accounts receivables period, accounts payables period, inventory conversion period, cash conversion cycle, financing policy, investing policy and moderating effect of ownership structure on financial performance. The study illustrated that accounts receivables collection period is negatively related to return on assets (? = -0.1299, p=0.0160), accounts payables payment period is negatively related to return on assets (? = -0.0843, p = 0.0070), inventory conversion period is negatively related to return on assets (?= -0.0623, p=0.0180), cash conversion cycle is negatively related to return on assets (? = -0.1107, p = 0.0030), financing policy is positively related to return on assets (? = 0.1589, p = 0.0000), investing policy is positively related to return on assets (? = 0.0291, p = 0.0000).

Impacts of experimental conditions on soil saturated hydraulic conductivity in conventional and conservation tillage practices

The saturated hydraulic conductivity (Ksat) is a key soil hydraulic property governing agricultural production. However, the influence of conversion from conventional tillage (CT) to conservation tillage (CS) (including no tillage (NT) and reduced tillage (RT)) on Ksat of soils is not well understood and still debated. In this study, we applied a global meta-analysis method to synthesize 201 paired observations for soil Ksat from 59 published studies, and investigated factors influencing the effects of conversion to CS on Ksat. Results showed that the Ksat measured by hood infiltrometer, tension disc infiltrometer, and Guelph permeameter produced a similar pattern under CS practices, with non-significant (p > 0.05) increase of 6.6 %, 3.6 % and 4.9 %, respectively. However, conversion to CS significantly (p < 0.05) increased Ksat by 32.0 % for ring infiltrometer, while it decreased Ksat by 3.2 % for constant/falling head (p > 0.05). Soil layer, CS type and soil texture had no significant (p > 0.05) effects on the influence of conversion to CS on the Ksat, but the Ksat under CS showed a greater increase for a longer conversion period (time since conversion). In addition, mean annual temperature (MAT) was found to be an important driver controlling the response of Ksat to tillage conversion at the large scale. These findings suggested that quantifying the effects of tillage conversion on soil Ksat needed to consider experimental conditions, especially the measurement technique and conversion period.

Firm Profitability And The Administration Of Working Capital: Delving Into A Case Of The Cement Sector Of Pakistan

This study endeavors to establish an association between the administration of working capital and firm returns in Pakistan’s cement sector. Ten companies listed in the cement industry of KSE 100 Index were taken from Pakistan Stock Exchange randomly. Financial data in secondary form was collected from the financial reports of cement firms of the country. The study employed return on assets as an explained variable and inventory turnover period in days, collection period in days, payment period, cash conversion cycle, sales in log, and liquidity ratios as explanatory variables while controlling for the influence offirm’s size and firm’s growth in terms of sales. It was found that the current ratio, log of sales, cash conversion cycle and inventory conversion period positively influenced the return of companies whereas size of the firm, collection period of receivables, payment period to creditors and the debt ratio of firms had a negative influence on it.

PENGARUH MANAJEMEN MODAL KERJA TERHADAP KINERJA PERUSAHAAN : STUDI PADA PERUSAHAAN-PERUSAHAAN MANUFAKTUR YANG TELAH GO PUBLIK DI BURSA EFEK INDONESIA

The purpose of this study is to obtain the empirical evidence about the impact of: (a) the average conversion period on company performance. (b) the inventory conversion period on company performance. (c) the average payment period on company performance and (d) the cash conversion cycle on company performance on the Indonesia Stock Exchange. To achieve this goal, research was carried out on manufacturing companies listed on the Indonesia Stock Exchange and the sample size is 48 companies. Thus, the sampling technique in this study used a purposive sampling. The data used in this study is secondary data. All data is obtained from the Indonesia Stock Exchange website. Furthermore, the regression coefficient of each independent variable was tested using the t test and the F test with α 10 percent. Referring to the results of research, the following conclusions can be made: First, the average conversion period has a positive and significant effect on company performance. The ability of the average conversion period in explaining the company's performance is 13.4 percent. Second, the inventory conversion period has a positive and significant effect on company performance. The ability of the inventory conversion period to explain the company's performance by 19.4 percent. Third, the average payment period has a positive and insignificant effect on company performance. The ability of average payment period in explaining the company's performance is 0.9 percent. Fourth, the cash conversion cycle has a positive and significant effect on company performance. The ability of the cash conversion cycle to explain the company's performance by 14.7 percent. Fifth, the cash conversion cycle and the quadratic cash conversion cycle can explain the variation in company performance by 23 percent. Sixth, there is no optimal working capital in the companies under study.

Value relevance of earnings and book values during IFRS convergence period in India

Purpose The authors aim to examine the association between earnings and book values with stock prices in India during the IFRS convergence period because, in India, the literature is yet to investigate more about IFRS convergence and its impact on the financial reporting environment. Hence, the purpose of this study is to assess the influence of IFRS conversion on the value relevance of accounting information throughout the IFRS conversion period. Design/methodology/approach The current paper endeavors to investigate the earnings and book values affiliation with stock prices in India during the IFRS convergence period by employing a price valuation model (Ohlson’s Model). The study assembled a total of 3,440 firm-year observations from the National Stock Exchange in India over five years, which signifies the IFRS conversion period (2015–2019). Findings The research findings displayed that accounting information such as earnings, book value has value relevance throughout the IFRS enforcement period; however, the value relevance has been increasing for earnings and showing a descending association for book value. The significant explanatory power of earnings reveals that market participants give more weightage to earnings than book values. Overall, the findings of the study will facilitate improved decision making for both, capital market participants and regulators, by highlighting the key areas for improvement in the Indian capital market. Research limitations/implications This study also extends a discussion on the subject in those economies where regulations are weak and the market is imperfect with asymmetrical information. Practical implications The research outcome provides for empirical shreds of evidence regarding the value relevance of accounting information during IFRS enforcement in India, where IFRS is a recent emergence. Social implications This paper examines the value relevance of accounting information during IFRS convergence period in India which will felicitate improved decision making for both, market regulators and investors. Originality/value This research is the first factual documentation regarding value relevance of earnings and book value during the IFRS enforcement process in India with the most recent data and contributes to the limited study conducted in developing nations like India.

Institutional reform and change management: The conversion of polytechnics to technical universities

This research paper sought to review the way and manner the conversion of polytechnics in Ghana to technical universities were done to ascertain whether the process conformed to standard best practice. The inequality in terms of placement of polytechnic graduates in the public sector as compared to the traditional university graduates, lack of direct academic progression for polytechnic graduates with Higher National Diploma, low enrollment and the departure of experienced staff from the polytechnics to the traditional universities due to poor conditions of service leaving the polytechnics with less staff compelled the government to initiate the reform. Institutional reform has been a long-standing practice in the educational sector; however, the implementation of new policies remains a challenge to many public institutions in Ghana. The one-size-fits-all approach to managing change must give way to a multi-faceted approach that takes into consideration the diversity of the various stakeholders affected by the change. The adoption of an appropriate change model and proper engagement of stakeholders as well as handling the transition as a project rather than treating it like the usual work of the ministry of education would have eased the tension and agitations which characterized the conversion process. Despite the conversion period spanning almost four years, the stakeholders are yet to reap the full benefits of the reform.

Study of Working Capital Management on Small and Micro Businesses of Cassava-Based Food in Semarang Regency

This research is conducted to know the condition of small and micro business of cassava –based in Semarang regency related to management of working capital. Samples of this research are ten small and micro business of cassava-based food in that area. That data was obtained with questionnaires, which distributed to those samples. Interview and observation are also used to complete data from questioner. The data are analyzed by descriptive quantitative and quantitative. The result show that they run their business only to get revenue for meeting their basic needs. While, on the working capital management, they focus on finished goods inventory rather than on raw material inventory. The easiness of getting the cassava make them have a few cassava as inventory. They order cassava from nearest supplier for making any kinds of food. Most of working capital is financed by owners equity. Therefore, they do not dependent on creditors. Nevertheless, they have not yet included wages of workers to create net profit. Respectively, inventory conversion period, average collection period, payables deferral period and cash conversion cycle do not influence to return on asset. In the future, they can take loan to finance working capital as long as not more than owner’s equity. They should include wages expense to get profit. More importantly, they must own entrepreneurial spirit in business.

How to move from one ALIS to another: The experience of data transport

The problem of transfer from one ALIS (automated library information system) to another is decomposed. The models of ALIS implementation depending of the library’s computerization status are defined; these are fresh implementa-tion; implementation with further data transfer and simultaneous use of the data-base by several ALIS. Various methods of database transport are discussed, i.e. backup recovery; server image porting; tabular data transport through SQL-calls; export-import of bibliographic data and accounts in MARC format. The experience of ALIS databases transport into MegaPro integrated library system on Dubna University Library’s server is examined. The questionnaire-survey for the affiliate University libraries and recommendations for software, backup copying and pro-cedures for data conversion period are presented. Recommendations are also given for choosing the moment of data conversion; the factors for transport model selection and that of in-conversion information losses are specified.

Real-World Experience with Carbidopa-Levodopa Extended-Release Capsules (Rytary®): Results of a Nationwide Dose Conversion Survey

Background. The introduction of carbidopa-levodopa extended-release (CD-LD ER) capsules (Rytary®) did not go as smoothly as expected, largely due to difficulty around dose conversion from available immediate-release (IR) levodopa (LD) formulations. The dose conversion table in the CD-LD ER prescribing information was similar to the table used in the pivotal clinical trial and is considered by many prescribing HCPs to be less than optimal. By the end of the dose conversion period in that trial, dosing in 76% of subjects was adjusted for symptom control; roughly 60% of patients required a higher dose and about half required more frequent administration than the recommended TID dosing. Objective. The primary objective of our nationwide (US) survey was to determine the dose conversion strategy most commonly employed by CD-LD ER frequent prescribers. The survey also aimed to explore additional features regarding CD-LD ER use in clinical practice. Methods. A survey consisting of 21 multiple-choice questions was developed and administered to experts in the use of CD-LD ER, based on prescription volume. Results. Of the 394 HCPs who were invited to participate, 90 (23%) HCPs completed the survey. All respondents were aware of the dose conversion table; the largest group did not find the table to be helpful and did not use it to convert patients to CD-LD ER. The most common strategy in calculating the CD-LD ER dose was based on the total daily LD IR dose, with the majority of that group initiating dose conversion by doubling the total daily LD dose from CD-LD IR and administering CD-LD ER one less time per day. Conclusion. Overall, most survey respondents agreed that a good starting point for CD-LD ER conversion could be doubling the daily LD IR dose and administering it one time less frequently. Moreover, rapid patient follow-up after initial dose conversion to allow for further dose adjustments plays a critical role in achieving success. Gaining experience over time is important for satisfactory conversion.

Working Capital Management and SMEs Profitability in Emerging Economies: The Ghanaian Case

This study empirically examines the impact of working capital management (WCM) on the profitability of Small and Medium Scale Enterprises (SMEs) in the context of a developing economy, Ghana. We analyzed data on 366 SMEs over a 10-year period, spanning 2007 to 2016. Generalized method of moment (GMM) estimation was employed. The results reveal a positive relationship between trade payable period and profitability. The inventory conversion period and cash conversion cycle show a negative association with profitability. The results show an inverted U-shaped relationship between trade receivables collection period and corporate profitability, an indication of an optimal trade receivables collection period that maximizes profitability. Further check suggests a deviation from the optimal trade receivables collection period significantly and negatively affects corporate profitability. The study reveals the need for firms to ensure efficient management of working capital to maximize profitability.