The working capital management on the firms' financial performance with the moderating effect of the effectiveness of management policies: evidence from manufacturing companies listed in Colombo Stock Exchange
by Sulochana Dissanayake; Shanika Jayathunga; A.M.T. Madushan
American J. of Finance and Accounting (AJFA), Vol. 7, No. 1, 2022

Abstract: Few studies have found a moderating effect between working capital management and a firm's financial performance. Due to limited literature and contradictions, this study aims to emphasise the association between working capital management and a firm's financial performance with the moderating effect of management policies using evidence from manufacturing companies listed on the Colombo Stock Exchange from 2014 to 2018. According to Iqbal et al. (2014), 28 manufacturing companies were selected using convenience sampling. This study adopted the quantitative research methodology and used correlation and regression analysis. The results show that a firm's cash conversion cycle affects its return on assets and net profit margin. Effective management policies in terms of inventory age, collection period, and payment period strengthen the relationship between working capital management and firm's financial performance. This study will help financial analysts and managers achieve their goals.

Online publication date: Tue, 18-Apr-2023

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the American J. of Finance and Accounting (AJFA):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com