Current Assets Management of Small Enterprises

Nobanee, Haitham; Abraham, Jaya

doi:10.2139/ssrn.2970189

Cited by 5 publications

(12 citation statements)

References 39 publications

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“…The results indicated that decreasing inventories held and the number of days taken to settle liabilities is associated with higher corporate profitability. Similarly, Nobanee and Abraham (2015) studied the relationship between the firm's net trade cycle as a measure of the efficiency of current assets management and the liquidity of US small firms. The study employed Generalized Method of Moment Dynamic Panel-Data System Estimation with Robust Standard Errors for a sample of 5,802 US non-financial firms listed on the major US stock exchanges including the New York Stock Exchange, American Stock Exchange, NASDAQ Stock Market, and Over the Counter Market for the period 1990-2004.…”

Section: Review Of Literaturementioning

confidence: 99%

Current Assets Management, Remuneration, and Operating Cash Flow of UAE Construction Companies

Nobanee

Salman²,

Abraham

2021

IJFR

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This paper examines the effect of current assets management and remuneration on operating cash flow of construction firms listed in the United Arab Emirates stock market before and after the financial crises of 2008. The results present a negative and significant relationship between cash conversion cycle and operating cash flow for the full sample. The results also show a negative and significant relationship between the cash conversion cycle and operating cash flow of the firms during the crisis period. This indicated that the UAE construction companies were more efficient in managing their current assets during the crisis period.

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Section: Review Of Literaturementioning

confidence: 99%

Current Assets Management, Remuneration, and Operating Cash Flow of UAE Construction Companies

Nobanee

Salman²,

Abraham

2021

IJFR

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“…Penrose (1959) further maintains that; firms can create economic value not due to mere possession of resources but due to effective and innovative management of resources. Furthermore, the theory is of the view that, the success and uniqueness of a company as compared to its competitors is as a result of the resources that it has in terms of qualified human capital, machineries, raw materials and finances at its disposal, (Nobanee & Abraham, 2015). Availability of enough finances for example gives a business an edge over others as it is in a position to venture to new businesses, fund its operations and enjoy other economies of scale available in the industry, (Ochanda, 2014).…”

Section: Resource-based Viewmentioning

confidence: 99%

Influence of Financing on Performance of Small and Medium Women Owned Enterprises in Kwale County, Kenya

Obiria¹,

Maina²

2020

IJCFA

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Studies done by researchers around the world show women are in entrepreneurship in major towns and rural areas of Africa. Financial institutions have developed various products to boost their entrepreneurial spirit together with government support programmes with an aim to avail credit and increase the success rate of women owned businesses. The study sought to determine the influence of capital on performance of small and medium enterprises owned by women entrepreneurs. The main variables under focus included; access to capital, working capital structure, capital affordability and government finance programs. The study will fill a research gap as there is no known study to have been done in Kwale county. The theoretical framework forming the basis of the study consisted of; resource-based theory, dynamic trade off theory and access to capital theory. A comprehensive literature review was given for each variable and their relationships highlighted. The study adopted a descriptive research design, a population of 2000 and a sample of 600 SME owners. Furthermore, the study used questionnaires for data collection that were hand delivered to respondents after validity and reliability through pilot testing techniques. Data collected was coded, sorted and analyzed by use of simple regression model with the help of Statistical Package for Social Sciences application. The study was conducted in line with ethical requirements by seeking permissions from the university and government institutions before commencement of the study. Data from 501 respondents was analysed representing 83.5% of the sample. The results indicated that access to capital, capital affordability, working capital structure and government finance programs had a positive influence on performance of women owned SMES. The study concluded that for women entrepreneurs to perform well in their business, efforts should put in place to ensure capital is made accessible, affordable while enlightening them on what alternatives sources of capital are available; whether from the government or private sector, for better working capital structure. Finally, the study recommended that studies should be conducted on influence of knowledge, skills and management styles on the performance of women owned SMES in Kwale County.

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“…Por un lado, los activos corrientes comprenden, efectivo en el banco, inventario, cuentas por cobrar y negociables (Nobanee & Abraham, 2015).…”

Section: Definiciónunclassified

“…Por otro lado, los pasivos corrientes comprenden las cuentas por pagar, pagarés, gastos devengados e intereses por pagar (Hassan, 2018;Nobanee & Abraham, 2015).…”

Section: Definiciónunclassified

“…Para garantizar el crecimiento y la sostenibilidad, una empresa debe tener suficiente capital de trabajo para satisfacer sus obligaciones de corto plazo y otros gastos operativos(Tsagem et al, 2015).Es por ello que el capital de trabajo es necesario para sufragar aquellas obligaciones a corto plazo, tales como: compra de materias primas, mano de obra, gastos administrativos generales, impuestos, gastos de mantenimiento y reparación, gastos de energía y seguros surgidos durante el período(Konak & Güner, 2017).El objetivo del capital de trabajo es garantizar que las empresas tengan un flujo de caja adecuado para ejecutar operaciones regulares y reducir la posibilidad de no poder cumplir con los pasivos a corto plazo(Tuffour, 2017).En ese sentido, el capital de trabajo ayuda a mantener la liquidez, la solvencia, la supervivencia y la rentabilidad de la mayoría de las empresas(Nobanee and Abraham 2015;Hassan 2018;Zafar et al 2016) a su vez, no se encuentre en situaciones difíciles, financieramente en situaciones de crisis(Konak & Güner, 2017).Sin embargo, para Pushpakumar & Prabhath (2018) la cantidad de capital de trabajo no debe ser ni demasiado grande, ni demasiado pequeña.…”

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Gestión del capital de trabajo como estrategia financiera para el desarrollo empresarial

Mamani

Pusma

2020

RIVC

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El presente artículo tiene por objetivo analizar la gestión del capital de trabajo como estrategia financiera para el desarrollo empresarial, desde una revisión bibliográfica, apoyándose en la teoría de capital de trabajo. La finalidad del capital de trabajo es garantizar que las empresas tengan un flujo de caja adecuado para ejecutar operaciones regulares y así reducir la posibilidad de no poder cumplir con los pasivos u obligaciones a corto plazo. En ese sentido, el capital de trabajo ayuda a mantener la liquidez, la solvencia, la supervivencia y la rentabilidad de la mayoría de las empresas. Por tanto, deben estimar que, mediante la cobranza de las cuentas pendientes en el menor tiempo posible, que equivale al tiempo promedio que se requiere para convertir en efectivo las cuentas por cobrar; la rotación de inventario al mayor número de veces, es decir, el tiempo promedio que se requiere para convertir la materia prima en producto terminado listo para su distribución y posterior venta y pagando las cuentas pendientes (compra de materia prima, mano de obra, etc.) lo más tarde posible siempre y cuando eso no suponga pagar comisiones. Todo ello se constituye como estrategia financiera para el desarrollo empresarial que permite tener un capital de trabajo positivo; pues todo negocio debe lograr que sus ingresos superen a sus egresos. En ese sentido, esta estrategia financiera conlleva una gestión efectiva de cada elemento del activo y pasivo corriente, mediante la planeación, ejecución y control. En consecuencia, la empresa maximice su rentabilidad, teniendo en cuenta los riesgos.

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Current Assets Management of Small Enterprises

Cited by 5 publications

References 39 publications

Current Assets Management, Remuneration, and Operating Cash Flow of UAE Construction Companies

Current Assets Management, Remuneration, and Operating Cash Flow of UAE Construction Companies

Influence of Financing on Performance of Small and Medium Women Owned Enterprises in Kwale County, Kenya

Gestión del capital de trabajo como estrategia financiera para el desarrollo empresarial

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