AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA

The study is aimed at investigating the following issues: firstly, whether the different types of working capital, namely operating and non-operating working capital influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently, and secondly whether the different...

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Autores principales:	Rabia Bashir, Angappan Regupathi
Formato:	article
Lenguaje:	EN
Publicado:	Universiti Utara Malaysia 2021
Materias:	working capital short-term firm performance long-term firm performance pcse regression malaysian firms Finance HG1-9999
Acceso en línea:	https://doaj.org/article/5206a30759d44cf6aa470fc2b3e8431b
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spelling	oai:doaj.org-article:5206a30759d44cf6aa470fc2b3e8431b2021-12-05T06:55:07ZAGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA10.32890/ijbf2022.17.1.11675-722Xhttps://doaj.org/article/5206a30759d44cf6aa470fc2b3e8431b2021-12-01T00:00:00Zhttp://e-journal.uum.edu.my/index.php/ijbf/article/view/ijbf2022.17.1.1https://doaj.org/toc/1675-722XThe study is aimed at investigating the following issues: firstly, whether the different types of working capital, namely operating and non-operating working capital influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently, and secondly whether the different measures of operating working capital, namely disaggregated and aggregated (cash conversion cycle) operating working capital, influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently. It uses the panel data of 208 listed non-financial firms in Malaysia covering the period from 2013 to 2017, and the data has been sourced from Datastream. It employs the panel corrected standard errors regression model. The study has found that quicker sale of inventory increased both the short-term and long-term performance of the firm. Likewise, faster collection of receivables increased the long-term, but not short- term, performance. However, prompter payment of payables increased both the short-term and long-term performance. The study has also found that the disaggregated working capital measures – inventory, receivables, and payables contributed to a more nuanced influence of working capital on performance, compared to the aggregated working capital. The study has provided novel evidence that– higher non- operating working capital increased firm performance. Rabia BashirAngappan RegupathiUniversiti Utara Malaysiaarticleworking capitalshort-term firm performancelong-term firm performancepcse regressionmalaysian firmsFinanceHG1-9999ENInternational Journal of Banking and Finance, Vol 17, Iss 1, Pp 1-26 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	working capital short-term firm performance long-term firm performance pcse regression malaysian firms Finance HG1-9999
spellingShingle	working capital short-term firm performance long-term firm performance pcse regression malaysian firms Finance HG1-9999 Rabia Bashir Angappan Regupathi AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA
description	The study is aimed at investigating the following issues: firstly, whether the different types of working capital, namely operating and non-operating working capital influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently, and secondly whether the different measures of operating working capital, namely disaggregated and aggregated (cash conversion cycle) operating working capital, influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently. It uses the panel data of 208 listed non-financial firms in Malaysia covering the period from 2013 to 2017, and the data has been sourced from Datastream. It employs the panel corrected standard errors regression model. The study has found that quicker sale of inventory increased both the short-term and long-term performance of the firm. Likewise, faster collection of receivables increased the long-term, but not short- term, performance. However, prompter payment of payables increased both the short-term and long-term performance. The study has also found that the disaggregated working capital measures – inventory, receivables, and payables contributed to a more nuanced influence of working capital on performance, compared to the aggregated working capital. The study has provided novel evidence that– higher non- operating working capital increased firm performance.
format	article
author	Rabia Bashir Angappan Regupathi
author_facet	Rabia Bashir Angappan Regupathi
author_sort	Rabia Bashir
title	AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA
title_short	AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA
title_full	AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA
title_fullStr	AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA
title_full_unstemmed	AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA
title_sort	aggregate and disaggregate measures of operating and non-operating working capital influence on firm performance: evidence from malaysia
publisher	Universiti Utara Malaysia
publishDate	2021
url	https://doaj.org/article/5206a30759d44cf6aa470fc2b3e8431b
work_keys_str_mv	AT rabiabashir aggregateanddisaggregatemeasuresofoperatingandnonoperatingworkingcapitalinfluenceonfirmperformanceevidencefrommalaysia AT angappanregupathi aggregateanddisaggregatemeasuresofoperatingandnonoperatingworkingcapitalinfluenceonfirmperformanceevidencefrommalaysia
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AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA

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