Effects of working capital management on firm performance: Evidence from the EFQM certified firms

Yousaf, Muhammad; Briš, Petr

doi:10.1080/23322039.2021.1958504

Cited by 23 publications

(22 citation statements)

References 36 publications

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“…Research by Mudjijah & Hikmanto (2018) , Nurlaela et al (2019) , (Chandra et al, 2019) , Suharna & Silviyanti (2019) , Nguyen & Nguyen (2020) and Yousaf & Bris (2021) shows that there is an influence between capital structure and profitability but has a positive direction. The results of this study contradict the results of research by Maulita & Tania (2018) and Lumapow & Tumiwa 2020) that capital structure has no effect on profitability.…”

Section: Regression Model Testmentioning

confidence: 99%

“…Other studies Mustinah & Ferieka (2019) , Pardanawati (2021) , Putu et al (2021) and Almomani et al (2021) show that working capital turnover has a positive effect on profitability. Research from Singh & Bagga, (2019) and Yousaf & Bris (2021) that working capital has a negative effect on ROA.…”

Section: Regression Model Testmentioning

confidence: 99%

“…Research from Singh & Bagga, (2019) and Yousaf & Bris (2021) that working capital has a negative effect on ROA. Meanwhile, Daryanto & Rachmanto, (2017) and Lumapow & Tumiwa, (2020) found that working capital turnover had no significant effect on profitability (ROA).…”

Section: Introductionmentioning

confidence: 99%

“…Research by Mudjijah & Hikmanto (2018) , Nurlaela et al (2019) , (Chandra et al, 2019) , Suharna & Silviyanti (2019) , Nguyen & Nguyen (2020) and Yousaf & Bris (2021) resulted in the finding that capital structure (DAR) has a positive impact on profitability (ROA). Khan et al (2018) , Gharaibeh & Bani Khaled (2020) , Shahnia et al (2020) and Sensini & Vazquez (2021) find that capital structure (DAR) has a negative effect on profitability (ROA).…”

Section: Introductionmentioning

confidence: 99%

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Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Suharna

Kurniasih

2022

AIJB

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This paper analyzes the impact of liquidity and activity on profitability with capital structure as a mediating variable. Return on assets (ROA) is the company's ability to generate profits in a certain period and develop dynamically that changes from time to time, depending on the variables that affect it as a whole, type of business, or company. This study contributes to the literature by investigating the factors that affect the profitability (ROA) of companies indexed by SRI KEHATI. This study aims to identify the determinants of company profitability either directly or through the role of mediating variables. The analysis used is panel data regression. The selected model is the fixed effect model (FEM) and uses path analysis and Sobel test. The results show that the current ratio has a direct effect on capital structure and capital structure has a direct effect on ROA. On the other hand, the current ratio and working capital turnover have no direct effect on ROA and working capital turnover does not directly affect the capital structure. The results of the path analysis prove that the capital structure is able to mediate the effect of the current ratio on ROA.

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Section: Regression Model Testmentioning

confidence: 99%

Section: Regression Model Testmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Suharna

Kurniasih

2022

AIJB

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“…For example, Listiorini & Putri (2022) Gayathri & Vijayalakshmi (2021) used return on capital employed (RoCE) as a proxy to measure firm's performance. Some scholars employed two proxies (Yousaf, 2022a;Jyoti & Khanna, 2021;Bawazir et al, 2021;Yousaf & Bris, 2021b;Akgün & Karataş, 2020). Several authors have employed more than two proxies of the firm's performance (Almaskati, 2022;Bayraktaroglu et al, 2019;Soewarno & Tjahjadi, 2020;Yousaf, 2021;Xu & Li, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Best proxy to determine firm performance using financial ratios: A CHAID approach

Yousaf

Dey

2022

Review of Economic Perspectives

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The main purpose of this study is to investigate the best predictor of firm performance among different proxies. A sample of 287 Czech firms was taken from automobile, construction, and manufacturing sectors. Panel data of the firms was acquired from the Albertina database for the time period from 2016 to 2020. Three different proxies of firm performance, return of assets (RoA), return of equity (RoE), and return of capital employed (RoCE) were used as dependent variables. Including three proxies of firm’s performance, 16 financial ratios were measured based on the previous literature. A machine learning-based decision tree algorithm, Chi-squared Automatic Interaction Detector (CHAID), was deployed to gauge each proxy’s efficacy and examine the best proxy of the firm performance. A partitioning rule of 70:30 was maintained, which implied that 70% of the dataset was used for training and the remaining 30% for testing. The results revealed that return on assets (RoA) was detected to be a robust proxy to predict financial performance among the targeted indicators. The results and the methodology will be useful for policy-makers, stakeholders, academics and managers to take strategic business decisions and forecast financial performance.

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Corporate underinvestment and its effects on environmental, social, and governance performance

Cao,

Duan,

Ibrahim

2024

Environ Dev Sustain

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Effects of working capital management on firm performance: Evidence from the EFQM certified firms

Cited by 23 publications

References 36 publications

Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Best proxy to determine firm performance using financial ratios: A CHAID approach

Corporate underinvestment and its effects on environmental, social, and governance performance

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