TAILIEUCHUNG - Impact of working capital management on firm profitability: Empirical study in Vietnam

This article studies the impact of working capital management (WCM) on firm profitability (FP) in Vietnam. The study uses the Generalized Least Squares (GLS) regression method using a sample of 5,295 firms (observations) listed on stock market in Vietnam from 2009 to 2018. | Impact of working capital management on firm profitability Empirical study in Vietnam Accounting 6 2020 259 266 Contents lists available at GrowingScience Accounting homepage ac Impact of working capital management on firm profitability Empirical study in Vietnam Nguyen Thi Thanh Phuonga and Dang Ngoc Hungb aThuongmai University Vietnam bHanoi University of Industry Vietnam CHRONICLE ABSTRACT Article history This article studies the impact of working capital management WCM on firm profitability FP in Received February 2 2019 Vietnam. The study uses the Generalized Least Squares GLS regression method using a sample of Received in revised format 5 295 firms observations listed on stock market in Vietnam from 2009 to 2018. First the study found February 27 2020 that inventory turnover average receivables AR average payment AP cash conversion cycle Accepted March 1 2020 Available online CCC had negative impacts on the firm profitability FP . However when we continued using March 1 2020 quadratic function we found that INV AR AP and CCC had a non-linear relationship the U-curve Keywords with FP. These research results contribute managerial contributions for firms in efficiently using Working capital management capital when considering its investment policy. Days of inventory on hand Days of sales outstanding Average payment period Cash Conversion Cycle Profitability 2020 by the authors licensee Growing Science Canada 1. Introduction Working capital management WCM is one of important content in financial decision but it is not a new topic in the literature. However in the integration period of Vietnam economy with high competition the local firms face to many potential risks. Specifically in recent years an increasing Vietnam firms had financial difficulties even closed down or bankrupted. Therefore the firms depend on external investment when implementing working capital management strategy. How does WCM influence the firm profitability

• Kế toán - Kiểm toán
• Working capital management
• Firm profitability in Vietnam
• Generalized Least Squares
• Stock market in Vietnam
• Days of inventory on hand
• Lecture SME Management
• Bài giảng Quản lý doanh nghiệp vừa và nhỏ
• SME Management
• Working capital
• Determination of working capital needs
• Financial performance
• Financial performance of listed firms
• Listed firms
• Master Thesis in Economics
• Master Thesis in Economics sample
• Effective working capital management
• Capital management
• Capital business
• Nutritional Safety
• Food Security
• Working capital cycle
• Food industry
• Financial management
• Capital budgeting
• Special financing
• Financial system
• Share market terminology
• Working capital issues
• Fundamentals of financial management
• Financial statement analysis
• Small and medium size enterprises
• Capital structure
• Egyptian SMEs
• National Bank of Egypt
• Financial environments
• Financial statement
• Managerial finance
• Lecture Managerial finance
• Financial statements
• Accounts payable management
• Short term financing policies
• Small and medium enterprises
• Cash conversion cycle
• Accessing capital market
• Endogeneity problems
• Corporate finance
• Essentials of corporate finance
• Business finance
• Business organisation
• Risk analysis
• Fisheries industry
• Vietnam stock market
• Firm performance
• Real corporate world practices
• Regarding financing current assets decision
• Investment in current assets
• Financing Current Assets
• Doctoral thesis summary
• Improving working capital management efficiency
• Steel companies in Vietnam
• Steel companies
• WCM efficiency of steel enterprises
• Finance accounting and Auditing
• Return on assets
• Tobin’s Q
• Correlation analysis
• Dividend policy
• Financial forecasting
• Special topics