Working capital management and its effect on the profitability of chinese listed firms
Autor(a) principal: | |
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Data de Publicação: | 2016 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/12367 |
Resumo: | Working capital management is one part of the integrated corporate financial strategy. Efficient working capital management is expected to have a positive effect on companies’ business. The study aims to investigate the main factors that impact working capital practices of some listed firms in China across different industries and their effect on the firms’ performance. The sample contains more than 2000 listed companies in China during the 2010 to 2014 period. Cash Conversion Cycle (CCC) is used as a measure of working capital policy, while Gross Operational Income (GOI) is used as a measure of profitability. The main results of the study suggest that Chinese listed firms’ working capital policy is different across industries and stable over the research period. Firms in China are prone to choose conservative working capital policy, which is shown to be positively associated to the firms’ profitability in this sample. Like most previous studies, a negative relation is found between the working capital indicator CCC and the profitability indicator GOI, which means that while the overall financing policy is conservative, reducing the CCC can still make the firms profitability increase. Unlike most of the research, the leverage is positively related to the working capital indicator CCC, suggesting that working capital reduction could be an alternative way of financing. |
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Working capital management and its effect on the profitability of chinese listed firmsWorking capitalDeterminantsProfitabilityListed firmsChinaDeterminantesRendibilidadeEmpresas cotadasWorking capital management is one part of the integrated corporate financial strategy. Efficient working capital management is expected to have a positive effect on companies’ business. The study aims to investigate the main factors that impact working capital practices of some listed firms in China across different industries and their effect on the firms’ performance. The sample contains more than 2000 listed companies in China during the 2010 to 2014 period. Cash Conversion Cycle (CCC) is used as a measure of working capital policy, while Gross Operational Income (GOI) is used as a measure of profitability. The main results of the study suggest that Chinese listed firms’ working capital policy is different across industries and stable over the research period. Firms in China are prone to choose conservative working capital policy, which is shown to be positively associated to the firms’ profitability in this sample. Like most previous studies, a negative relation is found between the working capital indicator CCC and the profitability indicator GOI, which means that while the overall financing policy is conservative, reducing the CCC can still make the firms profitability increase. Unlike most of the research, the leverage is positively related to the working capital indicator CCC, suggesting that working capital reduction could be an alternative way of financing.A gestão do working capital é parte integrante da estratégia financeira de uma empresa. A gestão eficiente do working capital deverá ter um efeito positivo no desempenho das empresas. Neste estudo pretende-se investigar quais os principais determinantes na gestão do working capitale quais os seus efeitos na performance de um conjunto de empresas cotadas Chinesas. A amostra contém mais de 2000 empresas cotadas na China durante o período de 2010 a 2014. O Cash ConversionCycle (CCC) é a medida utilizada na análise das políticas de working capital, enquanto o Gross OperationalIncome (GOI) é a medida de rendibilidade utilizada. Os principais resultados sugerem que as políticas de working capital seguidas diferem entre setores de atividade, embora se mantenham estáveis ao longo do período de análise. As empresas Chinesas tendem a seguir políticas de working capital conservadoras, o que está associado de forma positiva com a rendibilidade nas empresas em estudo. Embora no geral a política de financiamento seja conservadora, e tal como em muitos estudos anteriores, foi possível encontrar uma relação negativa entre o indicador de working capital CCC e o indicador de rendibilidade GOI, onde uma redução do CCC está associada à melhoria da rendibilidade. Ao contrário de estudos anteriores, o endividamento está positivamente relacionado com o working capital, sugerindo que as empresas podem reduzir o working capital como fonte alternativa de financiamento..2017-01-17T18:16:13Z2016-01-01T00:00:00Z20162016-06info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfapplication/octet-streamhttp://hdl.handle.net/10071/12367TID:201215535engLi, Qianinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:48:17Zoai:repositorio.iscte-iul.pt:10071/12367Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:23:32.645153Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Working capital management and its effect on the profitability of chinese listed firms |
title |
Working capital management and its effect on the profitability of chinese listed firms |
spellingShingle |
Working capital management and its effect on the profitability of chinese listed firms Li, Qian Working capital Determinants Profitability Listed firms China Determinantes Rendibilidade Empresas cotadas |
title_short |
Working capital management and its effect on the profitability of chinese listed firms |
title_full |
Working capital management and its effect on the profitability of chinese listed firms |
title_fullStr |
Working capital management and its effect on the profitability of chinese listed firms |
title_full_unstemmed |
Working capital management and its effect on the profitability of chinese listed firms |
title_sort |
Working capital management and its effect on the profitability of chinese listed firms |
author |
Li, Qian |
author_facet |
Li, Qian |
author_role |
author |
dc.contributor.author.fl_str_mv |
Li, Qian |
dc.subject.por.fl_str_mv |
Working capital Determinants Profitability Listed firms China Determinantes Rendibilidade Empresas cotadas |
topic |
Working capital Determinants Profitability Listed firms China Determinantes Rendibilidade Empresas cotadas |
description |
Working capital management is one part of the integrated corporate financial strategy. Efficient working capital management is expected to have a positive effect on companies’ business. The study aims to investigate the main factors that impact working capital practices of some listed firms in China across different industries and their effect on the firms’ performance. The sample contains more than 2000 listed companies in China during the 2010 to 2014 period. Cash Conversion Cycle (CCC) is used as a measure of working capital policy, while Gross Operational Income (GOI) is used as a measure of profitability. The main results of the study suggest that Chinese listed firms’ working capital policy is different across industries and stable over the research period. Firms in China are prone to choose conservative working capital policy, which is shown to be positively associated to the firms’ profitability in this sample. Like most previous studies, a negative relation is found between the working capital indicator CCC and the profitability indicator GOI, which means that while the overall financing policy is conservative, reducing the CCC can still make the firms profitability increase. Unlike most of the research, the leverage is positively related to the working capital indicator CCC, suggesting that working capital reduction could be an alternative way of financing. |
publishDate |
2016 |
dc.date.none.fl_str_mv |
2016-01-01T00:00:00Z 2016 2016-06 2017-01-17T18:16:13Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/12367 TID:201215535 |
url |
http://hdl.handle.net/10071/12367 |
identifier_str_mv |
TID:201215535 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
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info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/octet-stream |
dc.source.none.fl_str_mv |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799134797332742144 |