Inventory management, cost of capital and firm performance: evidence from manufacturing firms in Jordan

Alrjoub, Ashraf Mohammad Salem; Ahmad, Muhannad Akram

doi:10.21511/imfi.14(3).2017.01

Cited by 10 publications

(7 citation statements)

References 41 publications

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“…This finding is in line with the works of Ahmed (2016) who found out a positive effect between inventory management and profitability. Similar results were also found in Mulindabigwi and Mulyungi (2017) in Rwanda and Ashraf and Muhannad (2017) in Jordan. The findings of this research contradicts that of Bawa et al (2018) which discovered an insignificant negative effect between inventory conversion period and ROA and likewise findings of Otuya and Eginiwin (2017) in Nigeria and Nirujah (2015) in Sri Lanka.…”

Section: Discussion Of Findingssupporting

confidence: 87%

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Inventory Management and Financial Sustainability: Insight From Quoted Manufacturing Firms in Nigeria.

Okeke¹,

Okere²,

Abiahu³

et al. 2022

IJMFA

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This study analysed inventory management emphasis and its possible effect on financial sustainability of Nigerian quoted manufacturing firms. The study made use of the research design, ex-post facto. The study focused on manufacturing firms and ten were purposely sampled from the Nigerian Stock Exchange. Secondary data were obtained from the annual financial reports of the selected manufacturing firms over a ten-year period, 2008-2017. Descriptive statistics and inferential statistics (panel regression) were the analyses conducted for the study. The findings which emanated from the analysis indicated inventory turnover having a significant positive effect on financial sustainability. The conclusion of the study was that inventory management influences financial sustainability significantly. It also recommended that management of companies should develop and implement policies that will ensure good inventory management and also consider the policies of their suppliers and customers purchase pattern in order to have sustainable financial performance.

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Section: Discussion Of Findingssupporting

confidence: 87%

“…Using SPSS to analyse the data, the finding of the study revealed inventory management having a significant positive effect with financial performance. Results were also similar for Mulindabigwi and Mulyungi (2017) in Rwanda, Ashraf and Muhannad (2017) in Jordan and Ahmed (2016) in Nigeria.…”

Section: Literature Reviewsupporting

confidence: 57%

Inventory Management and Financial Sustainability: Insight From Quoted Manufacturing Firms in Nigeria.

Okeke¹,

Okere²,

Abiahu³

et al. 2022

IJMFA

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“…These classification criteria provide a different perspective to view inventory which can be valuable depending on the underlying goal of the organization, and a wide range of mechanisms can impact each one. Multiple classification systems have been studied and compared against the ABC system and found to be more effective; some of these alternatives are deemed more effective [9,[11][12][13]. However, little has been developed on inventory classification concerning environmental sustainability aspects.…”

Section: Inventory Managementmentioning

confidence: 99%

Waste Minimization by Inventory Management in High-Volume High-Complexity Manufacturing Organizations

Afy-Shararah

Jagtap

Pagone

et al. 2023

Lecture Notes in Mechanical Engineering

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Organizations that manufacture high volumes of complex products (e.g., pharmaceutical, automotive, food) require specific strategies to ensure efficient processing of parts and a sustainable level of inventory by waste minimization. A review of literature sources revealed how inventory is classified and managed amongst organizations and industries and key challenges that current organizations face with existing inventory management systems. In this paper, these findings are compared against each other to determine best practices and potential shortfalls that should be addressed when trying to manage inventory holistically. A study is then conducted using qualitative data from 15 semi-structured interviews to answer key questions on inventory management based on the findings from the literature survey. Responses are inductively coded and analyzed to reveal the most important factors of inventory management and determine the most prominent themes. A graphical model to represent the findings is also presented. Inventory functional accountability, inventory classification, operational strategies, visual management of inventory data, and efficient processes were some of the key themes known to be critical for effective inventory management and thus illustrated in the graphical model.

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“…In a developing economy such as Jordan's, Alrjoub and Ahmad (2017) conducted research on the moderating impact of cost of capital on inventory types and firm value as a proxy for business performance. According to the study, the cost of capital influences the relationship between inventory management and company performance.…”

Section: Literature Reviewmentioning

confidence: 99%

Effects of Cost of Capital on Firm Performance in Kenya

Ochoki,

Oloo,

Mwabaka

et al. 2023

EAFJ

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This paper discusses the importance of the cost of capital and its impact on the performance of firms in Kenya. The cost of capital is affected by various factors such as interest rates, inflation, market conditions, and government policies. Financial managers use discounting cash flow techniques to evaluate capital investments, which requires the estimation of the project's cash flows and the discount rate. The article also explores the concept of capital structure and its significance in determining the cost of capital. Managers need to manage the capital structure effectively to optimize shareholder wealth and minimize the company's cost of capital. The article highlights the importance of balancing the mix of financing sources between debt and equity. High costs of capital can limit a firm's access to financing, while low costs of capital can improve a firm's investment and growth opportunities. This article concludes that the cost of capital is an essential factor that affects the performance of firms in Kenya. It impacts investment decisions, financial structure, and competitiveness in the market. Researchers suggest that managers should balance the use of debt and equity financing in an optimum manner to maximize shareholder wealth. However, the research suggests that high costs of capital can discourage firms from investing in new projects, reducing growth and profitability. Firms need to evaluate their cost of capital and consider strategies to lower it, such as improving creditworthiness or exploring alternative financing options.

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Inventory management, cost of capital and firm performance: evidence from manufacturing firms in Jordan

Cited by 10 publications

References 41 publications

Inventory Management and Financial Sustainability: Insight From Quoted Manufacturing Firms in Nigeria.

Inventory Management and Financial Sustainability: Insight From Quoted Manufacturing Firms in Nigeria.

Waste Minimization by Inventory Management in High-Volume High-Complexity Manufacturing Organizations

Effects of Cost of Capital on Firm Performance in Kenya

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