Working Capital Management and Working Capital Policies on Firm’s Value: A Special Reference to the Listed Companies in Sri Lanka
Asian Journal of Economics, Business and Accounting · pp. 122–137 · Published 18 Sep 2023
10.9734/ajeba/2023/v23i201098Abstract
The aim of this paper is to investigate the influence between working capital management and firm value in the Sri Lankan context. This research has used pooled panel data of 475 observations from 95 listed firms across 18 sectors. Secondary data which are gathered from the annual report published by the CSE for the five years period from 2018/2019 to 2022/2023. The findings states that this model in the study explains a rise in the number of days in the cash conversion period decreased the firm's valuation by 43%. Further, working capital investment policy increases, or in other terms, the degree of WCIP’s aggressiveness rises, the firm value decreases, and increases in financing policy leads to decreases in firm value. This study includes both working capital investment policy and working capital financing policy with control variables in Sri Lanka. This research provides limited literature on working capital management, working capital policies, and firm value in Sri Lanka.
References (56)
- 1 Corporate Social Responsibility and Financial Performance. [DOI]
- 2 Simultaneous Determination of Insider Ownership, Debt, and Dividend Policies [DOI]
- 3 Liquidity - profitability tradeoff: An empirical investigation in an emerging market [DOI]
- 4 A Cash Conversion Cycle Approach to Liquidity Analysis [DOI]
- 5 The Relationship Between Working Capital Management And Profitability: Evidence From The United States
- 6 Working capital management in SMEs [DOI]
- 7 Working Capital Management and Corporate Profitability: Evidence from Panel Data Analysis of Selected Quoted Companies in Nigeria [DOI]
- 8 Corporate Social Responsibility and Financial Performance [DOI]
- 9 WORKING CAPITAL MANAGEMENT AND CORPORATE PERFORMANCE OF MANUFACTURING SECTOR IN PAKISTAN
- 10 Pecking order or trade-off hypothesis? Evidence on the capital structure of Chinese companies [DOI]
- 11 Working capital management: Financial and valuation impacts [DOI]
- 12 Reevaluation of the structure-conduct-performance paradigm in banking [DOI]
- 13 The relative importance of working capital management and its components to SMEs' profitability [DOI]
- 14 The Effect of Asset Structure and Firm Size on Firm Value with Capital Structure as Intervening Variable [DOI]
- 15 INDUSTRY PRACTICE RELATING TO AGGRESSIVE CONSERVATIVE WORKING CAPITAL POLICIES
- 16 Working Capital Management and Corporate Performance: Case of Malaysia
- 17 Working capital management and firm profitability [DOI]
- 18 Working Capital Management and Corporate Performance: Evidence from Iranian Companies [DOI]
- 19 Corporate Social Performance and Financial Performance: Sample-Selection Issues [DOI]
- 20 Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa
- 21 Accounting : Text and Cases
- 22 Short-Term Financial Management. [DOI]
- 23 Corporate Financial Management. [DOI]
- 24 Firm Size As Company's Characteristic and Level of Risk Disclosure: Review on Theories and Literatures
- 25 Derivatives use and financial instrument disclosure in the extractives industry [DOI]
- 26 Measure the Performance with the Market Value Added: Evidence from CSR Companies [DOI]
- 27 Working capital policy practice: Evidence from Sri Lankan companies [DOI]
- 28 THE ASSOCIATION BETWEEN WORKING CAPITAL POLICY AND OPERATING RISK [DOI]
- 29 The Impact of Working Capital Management on Firm Value: Evidence from a Frontier Market [DOI]
- 30 WORKING CAPITAL POLICY AND OPERATING RISK: AN EMPIRICAL ANALYSIS [DOI]
- 31 High-growth firms : characteristics, job contribution and method observations
- 32 Impact of Working Capital Management on Profitability and Market Evaluation: Evidence from Tehran Stock Exchange
- 33 Management of Working Capital: A Neglected Subject [DOI]
- 34 Working Capital Management and Profitability of Listed Companies in Nigeria
- 35 Managerial finance, 7th ed.
- 36 The Impact of Working Capital Components on Firm Value in US Firms [DOI]
- 37 Working Capital Management practices of manufacturing sector companies in Sri Lanka: survey evidence
- 38 Impact of Working Capital Management on Firm’s Profitability: A Study on Listed Companies in Sri Lanka [DOI]
- 39 The determinants of corporate capital structure: Japanese evidence [DOI]
- 40 Different Working Capital Polices and the Profitability of a Firm [DOI]
- 41 DETERMINANTS OF PROFITABILITY UNDERLINING THE WORKING CAPITAL MANAGEMENT AND COST STRUCTURE OF SRI LANKAN COMPANIES
- 42 European Cash Management: A Guide to Best Practice
- 43 Working capital management and corporate performance of listed manufacturing companies in Sri Lanka
- 44 International Journal of Business and Management [DOI]
- 45 Firm Size and Profitability: A Study of Listed Manufacturing Firms in Sri Lanka
- 46 Impact of Working Capital Management on the Profitability of Public Listed Firms in The Netherlands During the Financial Crisis
- 47 Determinants of current ratios: a study with reference to companies listed in Bombay stock exchange
- 48 Working Capital Management and Corporate Profitability: Evidence from Panel Data Analysis of Selected Quoted Companies in Sri Lanka [DOI]
- 49 The effect of working capital management policy on profitability of firms listed at the Nairobi Securities Exchange
- 50 Is working capital management value-enhancing? Evidence from firm performance and investments [DOI]
- 51 Working capital management and corporate performance: Case of Malaysia
- 52 The Effect Of Working Capital Management On Firm’s Profitability: Empirical Evidence From An Emerging Market [DOI]
- 53 Accounting in a Business Context [DOI]
- 54 International Journal of Business and Social Science [DOI]
- 55 Journal of Small Business and Enterprise Development [DOI]
- 56 Does Working Capital Management Affect Profitability of Belgian Firms
Cited by 0
No indexed citations yet.
Related research
- Working Capital Management and the Performance of Selected Deposit Money Banks in Nigeria — shares topic coverage
- The Impact of Working Capital Management on the Profitability of Smart Bags Limited Manufacturing Firm in Zimbabwe — shares topic coverage
- Empirical Study on the Influence of Working Capital Management on Performance of SMEs in a Developing Economy — shares topic coverage
- Working Capital Financing Policy and Profitability: Empirical Study on Bangladeshi Listed Firms — shares topic coverage
- An Estimation of Working Capital Management on Profit Using Logistic Regression and Discriminant Analysis — shares topic coverage
Article metrics
Real usage data collected on this platform.
8
Page views
0
PDF downloads
0
Outbound clicks
0
Citations
Views over time
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
Traffic sources
Referring site, by host.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.