Impact of Working Capital Management on the Profitability of Companies in the Civil Construction Sector
The objective of this paper was to verify the impact of working capital management on the profitability of companies in the civil construction sector from 2007 to 2016. Therefore, some indicators of the companies of the sector were observed during the period. An econometric model was estimated from...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculdade Meridional IMED
2019-06-01
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| Series: | Revista de Administração IMED |
| Subjects: | |
| Online Access: | https://seer.imed.edu.br/index.php/raimed/article/view/2993 |
| _version_ | 1819128077465157632 |
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| author | Alexandre Teixeira Norberto Batista Roberto Silva da Penha Wagner de Paulo Santiago Handerson Leonidas Sales |
| author_facet | Alexandre Teixeira Norberto Batista Roberto Silva da Penha Wagner de Paulo Santiago Handerson Leonidas Sales |
| author_sort | Alexandre Teixeira Norberto Batista |
| collection | DOAJ |
| description | The objective of this paper was to verify the impact of working capital management on the profitability of companies in the civil construction sector from 2007 to 2016. Therefore, some indicators of the companies of the sector were observed during the period. An econometric model was estimated from panel data analysis. As determinants of the return on invested capital (ROI), the dependent variable in this study, were defined the average maturity indicators: average term of receipt of sales (PMR), average term of inventory renewal (PME), average term of payment to supplier (PMP). Estimating the regression with the random effects model, it was found that the explanatory variables present an inverse relation with the profitability of these companies at a level of 1% of significance, with the exception of the PMP. This implies that a shorter term for inventory and sales provides greater profitability for companies of the civil construction sector. It is also evidenced that the management of the company’s working capital impacts on profitability of companies in the civil construction sector. |
| first_indexed | 2024-12-22T08:22:05Z |
| format | Article |
| id | doaj.art-903502ec5b854889ba79a19bfffab4a0 |
| institution | Directory Open Access Journal |
| issn | 2237-7956 |
| language | English |
| last_indexed | 2024-12-22T08:22:05Z |
| publishDate | 2019-06-01 |
| publisher | Faculdade Meridional IMED |
| record_format | Article |
| series | Revista de Administração IMED |
| spelling | doaj.art-903502ec5b854889ba79a19bfffab4a02022-12-21T18:32:44ZengFaculdade Meridional IMEDRevista de Administração IMED2237-79562019-06-019111413110.18256/2237-7956.2019.v9i1.29931303Impact of Working Capital Management on the Profitability of Companies in the Civil Construction SectorAlexandre Teixeira Norberto Batista0Roberto Silva da Penha1Wagner de Paulo Santiago2Handerson Leonidas Sales3Universidade Federal de Minas Gerais - UFMGUniversidade Federal de Minas Gerais - UFMGUniversidade Estadual de Montes Claros - UNIMONTESUniversidade Federal de Minas Gerais - UFMGThe objective of this paper was to verify the impact of working capital management on the profitability of companies in the civil construction sector from 2007 to 2016. Therefore, some indicators of the companies of the sector were observed during the period. An econometric model was estimated from panel data analysis. As determinants of the return on invested capital (ROI), the dependent variable in this study, were defined the average maturity indicators: average term of receipt of sales (PMR), average term of inventory renewal (PME), average term of payment to supplier (PMP). Estimating the regression with the random effects model, it was found that the explanatory variables present an inverse relation with the profitability of these companies at a level of 1% of significance, with the exception of the PMP. This implies that a shorter term for inventory and sales provides greater profitability for companies of the civil construction sector. It is also evidenced that the management of the company’s working capital impacts on profitability of companies in the civil construction sector.https://seer.imed.edu.br/index.php/raimed/article/view/2993RentabilidadeCapital de GiroConstrução Civil |
| spellingShingle | Alexandre Teixeira Norberto Batista Roberto Silva da Penha Wagner de Paulo Santiago Handerson Leonidas Sales Impact of Working Capital Management on the Profitability of Companies in the Civil Construction Sector Revista de Administração IMED Rentabilidade Capital de Giro Construção Civil |
| title | Impact of Working Capital Management on the Profitability of Companies in the Civil Construction Sector |
| title_full | Impact of Working Capital Management on the Profitability of Companies in the Civil Construction Sector |
| title_fullStr | Impact of Working Capital Management on the Profitability of Companies in the Civil Construction Sector |
| title_full_unstemmed | Impact of Working Capital Management on the Profitability of Companies in the Civil Construction Sector |
| title_short | Impact of Working Capital Management on the Profitability of Companies in the Civil Construction Sector |
| title_sort | impact of working capital management on the profitability of companies in the civil construction sector |
| topic | Rentabilidade Capital de Giro Construção Civil |
| url | https://seer.imed.edu.br/index.php/raimed/article/view/2993 |
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