Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States

Habib, Ahmed Mohamed

doi:10.21272/fmir.6(3).18-25.2022

Cited by 42 publications

(62 citation statements)

References 37 publications

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“…For instance, current and quick ratios have been embraced to measure firms’ liquidity levels (Shin & Soenen, 1998 ). Therefore, it has been slammed for its inherent static nature (Emery & Cogger, 1982 ; Habib, 2022 ; Habib & Kayani, 2022 ; Habib & Mourad, 2022 ). Alternatively, Richards and Laughlin ( 1980 ) proposed the adoption of cash conversion cycle (CCC), but this was slammed for being mathematically inaccurate, not focusing on funds tied up, and lacking differentiation in the weights appointed to each element of working capital.…”

Section: Literature Reviewmentioning

confidence: 99%

“…To address these issues with traditional ratios, investigators have adopted alternative techniques for assessing WCME. DEA is one such measure that prior studies have relied on for assessing the WCME (Goel & Sharma, 2015 , 2016 ; Habib, 2022 ; Habib & Kayani, 2022 ; Habib & Mourad, 2022 ; Seth, Chadha, Ruparel, et al, 2020 ; Seth et al, 2021a , b ). A study of Indian companies from 2004 to 2013 reported a continual improvement in WCME and pointed out that the DEA technique was useful in overcoming the limitations associated with traditional measures of WCME (Goel & Sharma, 2015 , 2016 ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…For example, Deloof ( 2003 ) and Tran et al ( 2017 ) refer to WCM as an important strategy for improving profitability. Moreover, it can support a firm’s risk management and enhance its value (Boisjoly et al, 2020 ; Habib, 2022 ). In addition, a conservative WCM approach involves higher investment in inventories and accounts receivables, which reduces the supply-related price and costs fluctuations, thus leading to less risk for firms (Fernández-López et al, 2020 ; Shin & Soenen, 1998 ).…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, firms seek to employ and optimize their WCM and IC to achieve best practices through their unique structures and objectives. The gaps in empirical studies highlight the need to appraise WCM and IC and verify their potential influence on firm performance (Dalwai & Salehi, 2021 ; Habib, 2022 ; Tarek & Rafik, 2020 ). Thus, supporting firms to obtain the best performance and excel in the business environment.…”

Section: Introductionmentioning

confidence: 99%

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Does the Efficiency of a Firm’s Intellectual Capital and Working Capital Management Affect Its Performance?

Habib¹,

Dalwai

2023

J Knowl Econ

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This study explores the efficiency of intellectual capital (ICE) and working capital management (WCME) in the GCC industrial sector and its potential impact on firm performance. The data were gathered from Standard & Poor’s database from 2015 to 2019. This study uses data envelopment analysis (DEA), regression analysis, and robustness tests to accomplish its aims. The results indicate that most firms do not employ their intellectual and working capital investments well and need improvement actions to achieve the best practices. The regression model results reveal that ICE and WCME significantly and positively influence firms’ performance. The results of this study support the resource-based, trade-off, and pecking order theories. The study findings have important implications for many stakeholders; for example, they would be helpful for firm decision-makers in managing their investments in intellectual and working capital to achieve the best practices and improve a firm's performance. In addition, the findings would be helpful for financiers, because high-performance firms are likely to have more reasonable valuations that facilitate debt financing. Moreover, the findings have noteworthy implications for trading procedures as investors aspire to attractive economic returns for their investments in corporations that pasture ICE and WCME issues. Additionally, these findings have important implications for employee job satisfaction and retention by improving IC management.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Does the Efficiency of a Firm’s Intellectual Capital and Working Capital Management Affect Its Performance?

Habib¹,

Dalwai

2023

J Knowl Econ

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“…Efficiency scores can be mathematically described using the DEA approach, as follows (32,(49)(50)(51):…”

Section: Methodology Dea-malmquist Modelmentioning

confidence: 99%

Analyzing the efficiency of Chinese primary healthcare institutions using the Malmquist-DEA approach: Evidence from urban and rural areas

Zhou

Peng

Chang

et al. 2023

Front. Public Health

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BackgroundChina has been increasing the investment in Primary Health Care Institutions (PHCIs) since the launch of the New Health Care System Reform in 2009. It is a crucial concern whether the PHCIs can meet residents' need both in urban and rural with the limited government finance, especially encountering the challenge of the COVID-19. This study aimed to reveal the trend of the primary health service efficiency in the past decade, compare the urban-rural differences, and explore relevant factors.MethodsDEA and Malmquist models were applied to calculate the health service efficiency of PHCIs among 28 provinces in China, with the input variables including the number of institutions, number of beds, number of health technicians, and the outputs variables including the number of outpatients and emergency visits, number of discharged patients. And the Tobit model was used to analyze the factors on the efficiency in urban and rural. A sensitivity analysis for model validations was also carried out.ResultsThe average technical efficiency (TE) of urban PHCIs fluctuated from 63.3% to 67.1%, which was lower than that in rural (75.8–82.2%) from 2009 to 2019. In terms of dynamic efficiency, the urban PHCIs performed better than the rural, and the trends in the total factor productivity change were associated with favorable technology advancement. The population density and dependency ratio were the key factors on TE in both of the urban and rural PHCIs, and these two factors were positively correlated to TE. In terms of TE, it was negatively correlated with the proportion of total health expenditure as a percentage of GDP in urban PHCIs, while in rural it was positively correlated with the urbanization rate and negatively correlated with GDP per capita. Besides, the tests of Mann–Whitney U, and Kruskal–Wallis H indicated the internal validity and robustness of the chosen DEA and Malmquist models.ConclusionsIt needs to reduce the health resource wastes and increase service provision in urban PHCIs. Meanwhile, it is necessary to strengthen medical technology and gaining greater efficiency in rural PHCIs by technology renovation.

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Governance Disclosure, Integrated Reporting, CEO Compensation, Firm Value

Utomo,

Machmuddah

2024

Lecture Notes in Networks and Systems

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Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States

Cited by 42 publications

References 37 publications

Does the Efficiency of a Firm’s Intellectual Capital and Working Capital Management Affect Its Performance?

Does the Efficiency of a Firm’s Intellectual Capital and Working Capital Management Affect Its Performance?

Analyzing the efficiency of Chinese primary healthcare institutions using the Malmquist-DEA approach: Evidence from urban and rural areas

Governance Disclosure, Integrated Reporting, CEO Compensation, Firm Value

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