Determinants of Working Capital Investment: A Study of Malaysian Public Listed Firms
The paper examines the determinants of the level of investment in net operating working capital by firms in Malaysia. Data from 192 companies spanning a period of 8 years (2000- 2007) are analysed using the OLS regression technique for this purpose. The study finds that in times of economic expansio...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Wollongong
2013-06-01
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| Series: | Australasian Accounting, Business and Finance Journal |
| Subjects: | |
| Online Access: | http://ro.uow.edu.au/aabfj/vol7/iss2/5 |
| _version_ | 1818111699288326144 |
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| author | Shaista Wasiuzzaman Veeri Chettiar Arumugam |
| author_facet | Shaista Wasiuzzaman Veeri Chettiar Arumugam |
| author_sort | Shaista Wasiuzzaman |
| collection | DOAJ |
| description | The paper examines the determinants of the level of investment in net operating working capital by firms in Malaysia. Data from 192 companies spanning a period of 8 years (2000- 2007) are analysed using the OLS regression technique for this purpose. The study finds that in times of economic expansion, younger and smaller firms with less tangible assets, low leverage, high immediate sales growth, high operating cash flows, less volatile revenues and low levels of asymmetric information are likely to have the highest investments inoperating working capital. Board characteristics, namely size and the independence of the board, are not found to have any significant influence on the working capital investment of firms. |
| first_indexed | 2024-12-11T03:07:11Z |
| format | Article |
| id | doaj.art-92d9c2589a7c4f9697d7bac12b96e46c |
| institution | Directory Open Access Journal |
| issn | 1834-2000 1834-2019 |
| language | English |
| last_indexed | 2024-12-11T03:07:11Z |
| publishDate | 2013-06-01 |
| publisher | University of Wollongong |
| record_format | Article |
| series | Australasian Accounting, Business and Finance Journal |
| spelling | doaj.art-92d9c2589a7c4f9697d7bac12b96e46c2022-12-22T01:22:56ZengUniversity of WollongongAustralasian Accounting, Business and Finance Journal1834-20001834-20192013-06-01724970Determinants of Working Capital Investment: A Study of Malaysian Public Listed FirmsShaista WasiuzzamanVeeri Chettiar ArumugamThe paper examines the determinants of the level of investment in net operating working capital by firms in Malaysia. Data from 192 companies spanning a period of 8 years (2000- 2007) are analysed using the OLS regression technique for this purpose. The study finds that in times of economic expansion, younger and smaller firms with less tangible assets, low leverage, high immediate sales growth, high operating cash flows, less volatile revenues and low levels of asymmetric information are likely to have the highest investments inoperating working capital. Board characteristics, namely size and the independence of the board, are not found to have any significant influence on the working capital investment of firms.http://ro.uow.edu.au/aabfj/vol7/iss2/5Working capital investmentpecking order theoryasymmetric informationboard characteristics |
| spellingShingle | Shaista Wasiuzzaman Veeri Chettiar Arumugam Determinants of Working Capital Investment: A Study of Malaysian Public Listed Firms Australasian Accounting, Business and Finance Journal Working capital investment pecking order theory asymmetric information board characteristics |
| title | Determinants of Working Capital Investment: A Study of Malaysian Public Listed Firms |
| title_full | Determinants of Working Capital Investment: A Study of Malaysian Public Listed Firms |
| title_fullStr | Determinants of Working Capital Investment: A Study of Malaysian Public Listed Firms |
| title_full_unstemmed | Determinants of Working Capital Investment: A Study of Malaysian Public Listed Firms |
| title_short | Determinants of Working Capital Investment: A Study of Malaysian Public Listed Firms |
| title_sort | determinants of working capital investment a study of malaysian public listed firms |
| topic | Working capital investment pecking order theory asymmetric information board characteristics |
| url | http://ro.uow.edu.au/aabfj/vol7/iss2/5 |
| work_keys_str_mv | AT shaistawasiuzzaman determinantsofworkingcapitalinvestmentastudyofmalaysianpubliclistedfirms AT veerichettiararumugam determinantsofworkingcapitalinvestmentastudyofmalaysianpubliclistedfirms |