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The study is aimed at investigating the following issues: firstly, whether the different types of working capital, namely operating and non-operating working capital influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently, and secondly whether the different measures of operating working capital, namely disaggregated and aggregated (cash conversion cycle) operating working capital, influence the short-term (return on assets) and long-term (Tobin’s Q) firm performance differently. It uses the panel data of 208 listed non-financial firms in Malaysia covering the period from 2013 to 2017, and the data has been sourced from Datastream. It employs the panel corrected standard errors regression model. The study has found that quicker sale of inventory increased both the short-term and long-term performance of the firm. Likewise, faster collection of receivables increased the long-term, but not short- term, performance. However, prompter payment of payables increased both the short-term and long-term performance. The study has also found that the disaggregated working capital measures – inventory, receivables, and payables contributed to a more nuanced influence of working capital on performance, compared to the aggregated working capital. The study has provided novel evidence that– higher non- operating working capital increased firm performance.

The purpose of this study is to identify the firm-specific and country-specific determinants of trade credit supply during the financial crisis of 2008 and compare among upper-middle income and lower-middle income countries. Trade credit supply is measured as average collection period. For panel data analysis, this study uses the Prais - Winsten Panel Corrected Standard Errors (PCSE) method. PCSE removes the of cross-sectional dependence issue in the panel dataset. Findings indicate that firms had to pay their suppliers earlier during the financial crisis 2008 than pre-crisis. Financial crisis significantly influenced the relationship between determinants and trade credit supply but to different levels in different income groups. Average payment periods and private credit to GDP significantly and positively increased the average collection period more in lower-middle income developing countries and less in upper-middle developing income countries. Cash flow volatility and leverage influenced the average collection period significantly and negatively during the crisis. This influence was stronger than pre-crisis and post-crisis periods, and more significant in lower-middle income countries and less in upper-middle income countries. The negative relationship between inflation and trade credit supply is strongly negative in lower-middle income countries. Overall, the results suggest that financial crisis changed the relationship between determinants and trade credit supply and the extant of this change was different in different income group countries.