Working capital management of manufacturing companies in Bangladesh: What factors make significant impact?
The paper aims to determine factors that make a significant impact on working capital management of a manufacturing company in Bangladesh. Of 221 service and manufacturing firms listed on the Dhaka Stock Exchange, 109 companies are chosen based on data availability for the five-year period 2014-2018...
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| Format: | Article |
| Language: | English |
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University of South Florida (USF) M3 Publishing
2022-09-01
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| Series: | Journal of Global Business Insights |
| Subjects: | |
| Online Access: | https://digitalcommons.usf.edu/globe/vol7/iss2/4 |
| _version_ | 1797689257463119872 |
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| author | Sumaiya Zaman |
| author_facet | Sumaiya Zaman |
| author_sort | Sumaiya Zaman |
| collection | DOAJ |
| description | The paper aims to determine factors that make a significant impact on working capital management of a manufacturing company in Bangladesh. Of 221 service and manufacturing firms listed on the Dhaka Stock Exchange, 109 companies are chosen based on data availability for the five-year period 2014-2018. The study examines literature on working capital management and tests theory on manufacturing companies listed on the Dhaka Stock Exchange. Cash conversion cycle is used as a measurement of working capital efficiency. Financial ratios representing six aspects of company's financial performance are taken as explanatory variables. They represent company asset management, debt structure, growth, liquidity, profitability, and size. The paper runs multivariate regression and correlation on the 545 firm-year observations in the panel data. Multicollinearity among the final statistically significant explanatory variables has also been tested. It is observed that company growth, profitability, and leverage can significantly explain company working capital efficiency in the manufacturing industry of Bangladesh. |
| first_indexed | 2024-03-12T01:43:07Z |
| format | Article |
| id | doaj.art-1b317264190e4873bd46bee928156f53 |
| institution | Directory Open Access Journal |
| issn | 2640-6489 |
| language | English |
| last_indexed | 2024-03-12T01:43:07Z |
| publishDate | 2022-09-01 |
| publisher | University of South Florida (USF) M3 Publishing |
| record_format | Article |
| series | Journal of Global Business Insights |
| spelling | doaj.art-1b317264190e4873bd46bee928156f532023-09-10T01:43:17ZengUniversity of South Florida (USF) M3 PublishingJournal of Global Business Insights2640-64892022-09-017210.5038/2640-6489.7.2.1198Working capital management of manufacturing companies in Bangladesh: What factors make significant impact?Sumaiya Zaman0University of Liberal Arts BangladeshThe paper aims to determine factors that make a significant impact on working capital management of a manufacturing company in Bangladesh. Of 221 service and manufacturing firms listed on the Dhaka Stock Exchange, 109 companies are chosen based on data availability for the five-year period 2014-2018. The study examines literature on working capital management and tests theory on manufacturing companies listed on the Dhaka Stock Exchange. Cash conversion cycle is used as a measurement of working capital efficiency. Financial ratios representing six aspects of company's financial performance are taken as explanatory variables. They represent company asset management, debt structure, growth, liquidity, profitability, and size. The paper runs multivariate regression and correlation on the 545 firm-year observations in the panel data. Multicollinearity among the final statistically significant explanatory variables has also been tested. It is observed that company growth, profitability, and leverage can significantly explain company working capital efficiency in the manufacturing industry of Bangladesh.https://digitalcommons.usf.edu/globe/vol7/iss2/4financial ratioscash conversion cyclemanufacturing industrydhaka stock exchange |
| spellingShingle | Sumaiya Zaman Working capital management of manufacturing companies in Bangladesh: What factors make significant impact? Journal of Global Business Insights financial ratios cash conversion cycle manufacturing industry dhaka stock exchange |
| title | Working capital management of manufacturing companies in Bangladesh: What factors make significant impact? |
| title_full | Working capital management of manufacturing companies in Bangladesh: What factors make significant impact? |
| title_fullStr | Working capital management of manufacturing companies in Bangladesh: What factors make significant impact? |
| title_full_unstemmed | Working capital management of manufacturing companies in Bangladesh: What factors make significant impact? |
| title_short | Working capital management of manufacturing companies in Bangladesh: What factors make significant impact? |
| title_sort | working capital management of manufacturing companies in bangladesh what factors make significant impact |
| topic | financial ratios cash conversion cycle manufacturing industry dhaka stock exchange |
| url | https://digitalcommons.usf.edu/globe/vol7/iss2/4 |
| work_keys_str_mv | AT sumaiyazaman workingcapitalmanagementofmanufacturingcompaniesinbangladeshwhatfactorsmakesignificantimpact |