A Study on Working Capital Practices Across Manufacturing Sector of Pakistan PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download A Study on Working Capital Practices Across Manufacturing Sector of Pakistan PDF full book. Access full book title A Study on Working Capital Practices Across Manufacturing Sector of Pakistan by Anwar Hussain. Download full books in PDF and EPUB format.
Author: Anwar Hussain
Publisher:
ISBN:
Category :
Languages : en
Pages : 20
Get Book Here
Book Description
The study examines the facts of working capital management practices adopted by Pakistani firms listed on Pakistan Stock Exchange (PSX). We collected data from 126 financial managers by using a questionnaire. We also make the discussion with financial analysts to know the components of working capital practices i.e. cash management, account receivable management, payable management, and inventory management. We found evidence that mostly firms follow hedge approach in financing and which involves a tradeoff between liquidity and profitability. Respondents consider account receivable management is backbone of efficient Working Capital. Moreover, we conclude that mostly firms rely on cash conversion cycle being a financial measure of WCM. Further, Pakistani firms tend to use centralized cash management and not follow any statistical tool or measure to control over inventory. Policy and decision makers and finance managers should pay more attention towards managing components of working capital and use statistical tool or software to check and evaluate their performance.
Author: Anwar Hussain
Publisher:
ISBN:
Category :
Languages : en
Pages : 20
Get Book Here
Book Description
The study examines the facts of working capital management practices adopted by Pakistani firms listed on Pakistan Stock Exchange (PSX). We collected data from 126 financial managers by using a questionnaire. We also make the discussion with financial analysts to know the components of working capital practices i.e. cash management, account receivable management, payable management, and inventory management. We found evidence that mostly firms follow hedge approach in financing and which involves a tradeoff between liquidity and profitability. Respondents consider account receivable management is backbone of efficient Working Capital. Moreover, we conclude that mostly firms rely on cash conversion cycle being a financial measure of WCM. Further, Pakistani firms tend to use centralized cash management and not follow any statistical tool or measure to control over inventory. Policy and decision makers and finance managers should pay more attention towards managing components of working capital and use statistical tool or software to check and evaluate their performance.
Author: Ahmed Imran Hunjra
Publisher:
ISBN:
Category :
Languages : en
Pages : 7
Get Book Here
Book Description
Working Capital Management (WCM) shows a significant role in manufacturing firm's performance. Current study examines the effect of WCM on firm's performance, stock performance, investment and value enhancing for the time period of 7 years from 2010 to 2016 in Pakistan. Panel Data Technique along with descriptive and correlation test has been employed for the sake of analysis. Moreover, Fixed Effect Model is also applied with strong evidence from Hausman and likelihood test. Stock performance is calculated by using the market to book value, operating performance by return on assets. Excess return is calculated by subtracting the expected return (Capital Assets Pricing Model) from the actual return (Share Prices return). Data has been gathered from annual reports, balance sheet analysis, yahoo finance, open door and from Pakistan Stock Exchange. Eventually, strong evidence has been found that WCM has a significant impact on the firm, as well as on stock performance, investment and value enhancing of the manufacturing sector of Pakistan. Moreover, the result suggests that firms can enhance their value, increase stock and operating performance and maximize the investment value with the optimal level of WCM. So, present research concludes in the light of investigated results that WCM plays a vital role for organization performance.
Author: Saad Abdullah
Publisher:
ISBN:
Category :
Languages : en
Pages : 29
Get Book Here
Book Description
The aim of conducting research is to explore the dynamic relation of working capital financing with respect to profitability of the firm & for that purpose data has been gathered from three different sectors i.e. chemical, cement & FMCG. For analyzing the results panel least square method has been employed for which stationarity level of data series has been checked through panel unit root test & results shows data series were non-stationary on level 1 but it has been stationary on 1st difference. This study is also among very few of the researches which uses quadratic model and panel regression models to verify the results. Additionally, this study explore the working capital management effect on profitability along with liquidity and short-term obligation as a measure of working capital management through considering specifically manufacturing sector by using the fixed/random effect regression model, on which no previous research has been done. Finding indicate that there is an insignificant but negative relationship between Return on assets (ROA) and all the control variables of working capital except current assets and sales in pooled regression model and current assets & debt ratio in fixed/random effect model. In brief, study suggests that profitability of firm is not dependent on investment in working capital of chemical, cement and consumer sectors of Pakistan.
Author: Lorenzo Preve
Publisher: Oxford University Press
ISBN: 0199741980
Category : Business & Economics
Languages : en
Pages : 173
Get Book Here
Book Description
Working Capital Management provides a general framework that will help managers understand working capital using a comprehensive approach that links operating decisions to their financial implications and to the overall business strategy. It will also help managers to gain a better understanding of the key drivers to profitability and value creation.
Author: Noheed Khan
Publisher:
ISBN:
Category :
Languages : en
Pages : 11
Get Book Here
Book Description
Working capital plays a significant role in the manufacturing sector. The recent study is based on the manufacturing sector of Pakistan. Thirteen manufacturing sectors were selected for this research. For analyzing the results, a univariate test was performed under a generalized linear model. The results reveal that cash has a negative impact on operating profitability. The Construction & Materials, Automobiles & Parts, Forestry & Paper, and Food Product sectors experience negative impacts on operating profitability. The Pharma & Biotech and the Chemicals sectors see highly negative impacts on operating profitability. Working capital management in some sectors have positive and some have negative impacts on the stock price.
Author: Habib Ahmad
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659811876
Category :
Languages : en
Pages : 52
Get Book Here
Book Description
This book is written on the measurement of the profitability in the correspondence of all measures of working capital management which are Average Collection Period, Inventory Conversion Period, Average Payment Period and Cash Conversion Cycle. This research is on the Food & Personal Care Sector in Pakistan as there no other significant research done on this topic before. Following research questions were framed: 1: What factors affect a performance of firm's working capital management? 2: How efficiently a firm converting its working capital into ready money? 3: How company value enhances through efficient working capital management? The analysis is limited to five years of data study from 2010-2014. Due to specific nature of study, firms in financial and other manufacturing sectors are excluded. All firms of Food and Personal care products have not been included in research sample. Certain firms are excluded due to their particular type of activity. Due to shortage of latest literature in the context of Pakistan's WCM has narrowed down our research output. Lastly, overall shortage of time is the main factor that restricted the output of our study.
Author: Muhammad Fawad Ahmad
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
Get Book Here
Book Description
This research is performed for dealing with some of the important working capital management policies and efficiency regarding to manufacturing sector of Pakistan. For this purpose data from 37 firms have been taken for the period 2009-2014. Data envelopment analysis (DEA) and Tobit regression analysis has been performed to achieve the objective of this study. DEA results indicate that only fifteen companies require increase in inputs to attain better output whereas six companies require decrease in the input. However sixteen companies have to consistent with their existing proportionate of inputs to sustain the output maximization. Tobit regression analysis concludes that average collection period has significant negative impact on efficiency and current ratio, gross working capital turnover ratio and financial leverage ratio have positive significant impact on efficiency.
Author: M. Jakšic
Publisher: Springer
ISBN: 1137402229
Category : Business & Economics
Languages : en
Pages : 454
Get Book Here
Book Description
This book focuses on business firms as catalysts and agents of social and economic change, and explores the argument that sustainable development is the perfect opportunity for businesses to strengthen the evolving notion of corporate social responsibility, while achieving long-term growth through innovation, research and development.
Author: A. Vijay Kumar
Publisher: Northern Book Centre
ISBN: 9788172111182
Category : Sugar trade
Languages : en
Pages : 264
Get Book Here
Book Description
The study of working capital is of major importance to internal and external analysis because of its close relationship to current day-to-day business. In fact, the study of working capital management needs special attention for the efficient working and survival of a business. It has been often observed that the shortage of working capital leads to the failure of a business. The proper management of working capital may bring about the success of a business firm. To run the business smoothly and to meet the day-to-day operational requirements, working capital funds are very essential. With this background in view, the present study was undertaken for a proper insight into the Management of working capital in the sugar industry. The book provides multidirectional and multidimensional investigation of various aspects of working capital management. The book discusses all the important aspects in a systematic manner. Apart from its extensive coverage and lucid presentation, the strength of the book lies in its Indian background. This book will be of immense use particularly to University and College teachers, Chartered Accountants, Company Secretaries, M.Com. B.Com., and MBA students and other professional courses. In addition, it would be a useful reference book for researchers and Financial Managers.
Author: Muhammad Hamid
Publisher:
ISBN:
Category :
Languages : en
Pages : 12
Get Book Here
Book Description
This study investigates the relationship between working capital management and profitability. In this research we have selected a sample of 92 Pakistani firms of textile sector for a period from 2006 to 2014. This study investigates the effect of different variables on net operating profit namely, Average collection period, Average payment period, Investing turnover in days cash conversion cycle, leverage and size of firm. Correlation and regression analysis are used for analysis. This study found that working capital management has significant negative effect on profitability of Pakistani textile sector. There is positive relationship between size and profitability.
