Download or read book Efficiency of Working Capital Management and Firm Value written by Ratnam Vijayakumaran and published by . This book was released on 2019 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the relationship between the efficiency of working capital management (WCM) and the firm value, focusing on a large panel of Chinese listed companies. WCM which involves a trade-off between profitability and risk is a very important element of the financial management of the firm. The net trade cycle (NTC) and its components are used to measure efficiency of WCM, while the firm value is measured by the Tobin's Q ratio. The study makes use of the panel data methodology to estimate the regression models. This study reports that the net trade cycle is negatively associated with firm value. More specially, the study finds that firm value is adversely affected by the number of days accounts receivable and inventories, indicating that working capital provides a real opportunity for financial executives to release cash and improve firms' value. The findings of this study are consistent with the idea that managers can enhance firm value by efficiently managing the investment in working capital.

Download or read book Working Capital Management written by Lorenzo Preve and published by Oxford University Press. This book was released on 2010-04-28 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book The Impact of Working Capital Management on Firm Value written by Ama Hingurala Arachchi and published by . This book was released on 2018 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate finance literature and finance practitioners have the notion that the efficient working capital management (WCM) affects firm value. This study investigates the value effect of working capital management, using a sample of 44 listed companies on the Colombo Stock Exchange (CSE) over the period 2011-2015. The CSE is currently recognized as a high growth frontier market (FM) in the world. The efficiency of WCM is measured using the Cash Conversion Cycle (CCC) and its components while firm value is measured by the Tobin Q ratio. The firm size, leverage and sales growth are used as the control variables. Using panel data regression methodology (the pooled OLS and fixed effects regressions), the study finds that CCC is inversely related to Tobin Q, suggesting that managers can create value for their shareholders by efficiently managing investment in working capital of their firms.

Download or read book Working Capital Management Concepts And Strategies written by H Kent Baker and published by World Scientific. This book was released on 2023-03-21 with total page 543 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital refers to the money that a company uses to finance its daily operations. Proper management of working capital is critical to financial health and operational success. Working capital management (WCM) aims to maximize operational efficiency by maintaining a delicate balance among growth, profitability, and liquidity. WCM is a continuous responsibility focusing on a firm's day-to-day operations involving short-term assets and liabilities. By efficiently managing a firm's cash, accounts receivable, inventories, and accounts payable, managers can help maintain smooth operations and improve a company's earnings and profitability. By contrast, poor WCM could lead to a lower credit score, financial insolvency, legal troubles, liquidation of assets, and potential bankruptcy.This book provides an objective look into the dynamic world of WCM. Its coverage extends from discussing basic concepts and their applications to increasingly complex and real-world situations. The book stresses that WCM is a combination of both art and science. This volume spans the gamut from theoretical to practical while offering the right balance of detailed and user-friendly coverage. Readers can gain an in-depth understanding of this subject from experts in this field. Those who want a broad survey will benefit, as will readers looking for more in-depth presentations of specific areas within this field of study. In summary, Working Capital Management: Concepts and Strategies provides a fresh look at this intriguing but often complex subject of WCM.

Download or read book Financial Structure and Economic Growth written by Aslı Demirgüç-Kunt and published by MIT Press. This book was released on 2001 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: CD-ROM contains: World Bank data.

Download or read book Innovative Management and Firm Performance written by M. Jakšic and published by Springer. This book was released on 2014-07-29 with total page 454 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Enhancing Shareholder Value Through Efficient Working Capital Management written by Palanisamy Saravanan and published by . This book was released on 2020 with total page 2 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working capital management is important owing to its effects on the firm's profitability, liquidity and more importantly on its value. In the current study, we investigated the link between efficiency of working capital management and value of the firm in the Indian context during the period 2004 to 2015. We deployed accounting as well as market based metrics to decipher the relationship between firm value and cash conversion cycle. Using panel data regression model, we found that shorter cash conversion cycle leads to higher firm value; further, we observed a non-linear relationship between cash conversion cycle and firm value indicating optimal level of investment in working capital enhances shareholders' value. Majority of the independent variables including control variables in the model are found to be highly significant. Further, our results are robust and are in consonance with the theory and have far reaching implications for the corporate finance managers, prospective investors, lenders, suppliers, government and regulatory authorities.

Download or read book CAPITAL INVESTMENT AND FINANCING FOR BEGINNERS written by Dr. Ajay Tyagi and published by Horizon Books ( A Division of Ignited Minds Edutech P Ltd). This book was released on 2017-01-01 with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt: A corporate speculator embraces a monetary assessment while choosing whether to put resources into substantial resources or different business. The speculator needs to guarantee that it pays close to a reasonable incentive to buy the venture and that the monetary benefit for its proprietors is augmented. The part talks about monetary assessment with regards to venture choices with an emphasis on speculation valuation and organizing and assessment procedures. Capital gave to an organization, and any value produced inside, should just be put resources into resources if esteem is made for investors—that is, the point at which the estimation of financial advantages emerging from the advantages surpasses the cost of procuring those advantages.

Download or read book Is Working Capital Management Value Enhancing Evidence from Firm Performance and Investments written by Nihat Aktas and published by . This book was released on 2014 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the value effect of working capital management (WCM) for a large sample of US firms between 1982-2011. Our results indicate (i) the existence of an optimal level of working capital policy; and (ii) firms that converge to that optimal level (either by increasing or decreasing their investment in working capital) improve their stock and operating performance. We also document that corporate investment is the channel through which efficient WCM translates into superior firm performance. In particular, efficient WCM allows firms to redeploy underutilized corporate resources to higher-valued use, such as the funding of cash acquisitions.

Download or read book Principles of Managerial Finance written by ITT and published by . This book was released on 2010-05 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Working Capital Management written by James S. Sagner and published by John Wiley & Sons. This book was released on 2014-08-25 with total page 310 pages. Available in PDF, EPUB and Kindle. Book excerpt: Stay liquid, think global, and better manage resources with this authoritative guide Working Capital Management is a comprehensive primer on keeping your business financially competitive in the face of limited access to short-term funds. With detailed insight applicable to each phase in the business cycle, this authoritative guide helps managers revamp current practices for more efficient use of assets and liabilities, including more stringent monitoring and planning of collections, disbursements, and balances. Readers will learn how to minimize investments in idle resources, and how to maximize the use of forecast data to better identify risk and the optimal use of available funds. Case studies illustrate the practical applications of the ideas presented, with particular attention given to cash budgeting, forecasting, banking relationships and other common scenarios with specific requirements. Managing a company’s short-term resources is both an art and a science. Effectively maintaining funds for ongoing activities – and keeping those funds liquid, mobile, and available – is a masterful skillset lacking in business. Working Capital Management offers practical advice for managers in this challenging position, providing guidance that helps them: Learn the specific metrics at work in capital management, and the problems that they can cause Improve cash management with robust fraud protection and better use of short-term instruments Manage the issues that arise from accounts receivable, inventory, payables, information management, and international sources Develop an effective management system for key points in the working capital cycle The recent liquidity crisis in the U.S. has thrown the spotlight onto those companies that have adjusted well to credit contraction and the weakened economy, and these success stories – some of which are noted in the book – demonstrate that a positive business outcome can be accomplished. Working Capital Management provides a clear look at a complex issue, with practical, actionable, sustainable advice.

Download or read book Financial Management and Analysis written by Frank J. Fabozzi and published by John Wiley & Sons. This book was released on 2003-07-25 with total page 1023 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial Management and Analysis, Second Edition covers many important financial topics that are neglected elsewhere--from raising funds via securitization to managing a financial institution. This book provides valuable insights into many major aspects of financial management and analysis, and includes expert advice, real-world examples, useful charts and graphs, and incisive end-of-chapter questions that help develop the skill set necessary to deal with the important financial problems encountered in today's business world.

Download or read book Working Capital Management And Control Principles And Practice written by Satish B. Mathur and published by New Age International. This book was released on 2007 with total page 548 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Comprehensive Text Systematically Explains The Various Principles, Policies And Methods Involved In Efficient Management Of Working Capital. The Indian Context Is Emphasised Throughout.The Book Provides An Indepth Analysis Of Such Critical Issues As * Assessment Of The Level Of Working Capital * Methods Of Financing * Control Over The Use Of FundsThe Book Discusses Both Fund Based And Non-Fund Based Working Capital Finance. It Also Explains Export, Information Technology And Software Industry Financing.The Book Presents Several Real Life Cases To Illustrate The Various Principles And Techniques.Each Chapter Ends With A Summery Providing A Quick And Useful Review Of The Chapter. Several Questions And Problems Are Also Included Throughout The Book For Self-Test.The Book Is An Ideal Text For Management And Commerce Students. It Would Also Serve As An Extremely Useful Reference Source For Practising Professionals And Consultants In The Finance And Banking Sectors.

Download or read book The Relationship Between Working Capital Management and Firm Performance written by Ruslan Stepanian and published by . This book was released on 2021 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates the relationship between working capital management and profitability among 188 publicly traded firms within the eurozone for the period 2016 to 2019. Working capital management was measured by days inventory outstanding, days sales outstanding, days payables outstanding, and cash conversion cycle. The profitability of a firm was captured by the basic earning power ratio. This study reveals a significant negative relationship between days inventory outstanding, days sales outstanding, days payables outstanding, and profitability of the firm. A significant positive relationship was found between the cash conversion cycle and firms performance. The research demonstrates that management of the firm can create value for the shareholders by reducing all three components of cash conversion cycle.*****This thesis investigates the relationship between working capital management and profitability among 188 publicly traded firms within the eurozone for the period 2016 to 2019. Working capital management was measured by days inventory outstanding, days sales outstanding, days payables outstanding, and cash conversion cycle. The profitability of a firm was captured by the basic earning power ratio. This study reveals a significant negative relationship between days inventory outstanding, days sales outstanding, days payables outstanding, and profitability of the firm. A significant positive relationship was found between the cash conversion cycle and firms performance. The research demonstrates that management of the firm can create value for the shareholders by reducing all three components of cash conversion cycle.

Download or read book Valuation Approaches and Metrics written by Aswath Damodaran and published by Now Publishers Inc. This book was released on 2005 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: Valuation lies at the heart of much of what we do in finance, whether it is the study of market efficiency and questions about corporate governance or the comparison of different investment decision rules in capital budgeting. In this paper, we consider the theory and evidence on valuation approaches. We begin by surveying the literature on discounted cash flow valuation models, ranging from the first mentions of the dividend discount model to value stocks to the use of excess return models in more recent years. In the second part of the paper, we examine relative valuation models and, in particular, the use of multiples and comparables in valuation and evaluate whether relative valuation models yield more or less precise estimates of value than discounted cash flow models. In the final part of the paper, we set the stage for further research in valuation by noting the estimation challenges we face as companies globalize and become exposed to risk in multiple countries.

Download or read book Relationship of Working Capital Management with Profitability written by Habib Ahmad and published by LAP Lambert Academic Publishing. This book was released on 2015-12-03 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Creating Shareholder Value written by Alfred Rappaport and published by . This book was released on 1986 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: Begins with dramatic proof of the shortcomings of accounting numbers as earnings per share, return on investment, and return on equity, and explains to develop value-creating business strategies and how to ...