The research investigates the impact of working capital management on financial performance by using the data collected from listed firms on Ho Chi Minh Stock Exchange (HOSE). The sample is comprised of 69 public firms over the period of 3 years from 2014 to 2016. Using the variable Cash Conversion Cycle (CCC) as measurement for Working Capital Management, the research also takes the following variables in to consideration: "Growth, Cash flow, Liquidity, Risk, and Leverage" which are proven to have impacts on firm performance besides working capital management. Regarding the measurements of financial performance, the variables comprise of Return on Assets (ROA), Return on Equity (ROE), and Return on Sales (ROS). The results imply that Working Capital Management positively impacts the financial performance of firms in the sample. Thus, our study gives a new insight to managers on how to improve the financial performance with working capital management.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.