Scribd
Upload
75 views1 page

Research Topic: Working Capital Management and Firm Financial Efficiency: Evidence From Manufacturing Firms of Bangladesh

Working capital management variables like receivable days, payable days, inventory days, and cash conversion cycle impact the financial efficiency of manufacturing firms in Bangladesh, as measured by profit margin, return on equity, and return on assets. Specifically, the document presents hypotheses that higher receivable periods, inventories days, and cash conversion cycle will lower profitability, while higher payable days and firm size will increase profitability. Gearing is hypothesized to lower profitability.

Uploaded by

Nazim Uddin Mahmud
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
75 views1 page

Research Topic: Working Capital Management and Firm Financial Efficiency: Evidence From Manufacturing Firms of Bangladesh

Working capital management variables like receivable days, payable days, inventory days, and cash conversion cycle impact the financial efficiency of manufacturing firms in Bangladesh, as measured by profit margin, return on equity, and return on assets. Specifically, the document presents hypotheses that higher receivable periods, inventories days, and cash conversion cycle will lower profitability, while higher payable days and firm size will increase profitability. Gearing is hypothesized to lower profitability.

Uploaded by

Nazim Uddin Mahmud
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Research Topic:

Working capital management and firm financial efficiency:


Evidence from Manufacturing Firms of Bangladesh.

Variable’s
Description of Variables Hypothesis Expected sign
abbreviation

Profit Margin
Dependent Variable

PM

ROE Return on Equity

ROA Return on asset

Higher the
Receivable days,
receivable period
ACP Time gap in the collection of Negative
lowers the
money from the customer.
profitability.
Higher the
Payable Days,
payable days
APP credit period offered by the Positive
higher the
suppliers
profitability.
Independent Variable

Inventory Days, Higher the


represents how long a inventories day
INV Negative
company is holding their lower the
inventory profitability.

Cash Conversion cycle, Higher the CCC


CCC movement of cash in terms of lowers the Negative
duration profitability.

Gearing, Higher the


Control Variable

GR amount of debt against total Gearing lower Negative


asset of the company the profitability.

Size of the firm, Greater the firm


SF determined by net sales end of size higher the Positive
the financial year profitability

You might also like