Modelling the Impact of Corporate Risk Management on Firms Financial Performance and Sustainable Growth: Evidence Grounded on Emerging and Developed Countries

Bagh, Tanveer; Naseer, Mirza Muhammad

doi:10.12816/0060057

Cited by 4 publications

(11 citation statements)

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“…Hence, H 3a is accepted, while H 3b and H 3c are rejected because ADI and ADP have an insignificant impact on EPS. These results are inconsistent with Bagh et al (2016) who found that ADR has a significant positive association with EPS, while ADI has a significant negative association with EPS.…”

Section: Discussion Of the Findingscontrasting

confidence: 98%

“…Thus, the main hypotheses (H1, H2 and H3) are accepted. These results agree with the findings of previous literature such as, Dadzie (2017), Bagh et al (2016) and Yazdanfar & Öhman (2014) who found that the number of days of CCC is associated negatively with FP measured by ROA. While these results contradicted with Nijam et al (2016) who found that, there is a significant positive association between CCC and FP measured by ROA and ROE.…”

Section: Regression Analysissupporting

confidence: 93%

“…While these results contradicted with Nijam et al (2016) who found that, there is a significant positive association between CCC and FP measured by ROA and ROE. In addition, these results are inconsistent with Niresh (2012); Bagh et al (2016) and Kasozi, J. (2017) who found that there is an insignificant association between CCC and FP.…”

Section: Regression Analysismentioning

confidence: 62%

“…purchases, increasing investments in inventory, accelerating payment of payables to suppliers and following aggressive policy of WCM. Similarly, Bagh et al (2016) reported that CCC had a significant negative impact on ROA, but it had insignificant negative impact on ROE and EPS. Consistently, Niresh (2012) found that WCM measured by CCC and current assets to total assets ratio have insignificant impact on ROA and ROE, suggesting that collecting receivables from customers according to the approved credit terms, delaying payment of payables to suppliers and improving control system for inventory would have a positive impact on enhancing firm's FP.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 97%

“…Lengthening the period of CCC will build good relations with the firm's customers, investors, creditors, and suppliers, encouraging them to engage in more activities with the firm. In addition, some studies found that CCC has an insignificant effect on FP such as Abdulazeez et al (2018); Kasozi (2017); Adamu (2016); Mbawuni et al (2016); Bagh et al (2016); Niresh (2012); Samiloglu & Demirgunes (2008).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Examining the Moderating Effect of Earnings Management on the Association between Working Capital Management and Firm’s Financial Performance: Evidence from Egypt

Abdelnabi¹,

Abd-Elhamid²,

Mahmoud³

2023

مجلة المحاسبة والمراجعه لاتحاد الجامعات العربیه

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The objective of this research is to study the influence of Working Capital Management (WCM) and its components on a firm's Financial Performance (FP). In addition, it aims to examine the moderating consequence of Earnings management (EM) on the association between WCM and the firm's FP. For the five-year study period from 2014 to 2018, a sample of 61 companies registered on the Egyptian stock exchange EGX was employed. The study hypotheses are tested using the Panel Least Squares (PLS) and Estimated Generalized Least Square (EGLS) regression analyses. The findings showed that WCM as measured by Cash Conversion Cycle (CCC) had a considerable negative influence on the firm's FP as measured by Return on Assets (ROA), Return on Equity (ROE), and Earnings per Share (EPS). It is concluded that the efficient management of WC can be achieved through shortening Average Days of collecting Receivables (ADR) and Average Days of holding Inventory (ADI) and lengthening Average Days of payment of Payables (ADP) as possible which in turn will be reflected positively on overall firm's FP. Finally, the results indicated that the involvement of EM practices measured by the modified Jones model (1995) strengthens the association between WCM and ROA. Thus, managers use EM practices in the process of WCM to improve a firm's FP measured by ROA.

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Section: Discussion Of the Findingscontrasting

confidence: 98%

Section: Regression Analysissupporting

confidence: 93%

Section: Regression Analysismentioning

confidence: 62%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Examining the Moderating Effect of Earnings Management on the Association between Working Capital Management and Firm’s Financial Performance: Evidence from Egypt

Abdelnabi¹,

Abd-Elhamid²,

Mahmoud³

2023

مجلة المحاسبة والمراجعه لاتحاد الجامعات العربیه

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The Impact of Firm Financial Fundamentals on Stock Performance: An Empirical Evidence on Indonesian Telecommunication Sector

Prastika,

Ardiansyah,

Pangaribuan

et al. 2023

E3S Web Conf.

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The rapid development and market rivalry eventually posed massive challenges in determining the future development trend of organizations to become market winners. Several types of research were conducted exploring the factors affecting investment in telecommunication companies. One has found significant relevance in financial management, which consists of financing, investment, and dividend decisions in private sector mobile telecom businesses. This study aimed to examine the impact of financial performance on the stock price of telecommunication companies listed on the IDX (Indonesia Stock Exchange) in the period of 2014-2020. The financial fundamentals used are current ratio (liquidity), return on asset (profitability), total asset turnover ratio (activity), and debt to asset ratio (solvency). This research applies qualitative data method. The population in this study is nine telecommunication companies listed on the IDX (Indonesia Stock Exchange) for seven-year period, and the sample selection technique used was purposive sampling. It resulted in 63 samples in total being obtained in this study. Moreover, the data type of this research uses secondary data, which is the annual financial report. The data analysis method in this study is descriptive analysis, classical assumption test, and multiple linear regression analysis processed using e-views 12. This research result is based on the fixed-effect method run since it is more suitable for the model of this research. The result shows that the financial fundamentals variables mutually have a significant impact on the stock performance. Yet, not all variables are significant individually.

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Impact of working capital management on profitability of Indian manufacturing companies

Garg,

2023

Int. J. Finance Manage. Econ.

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This study aims to analyze the relationship between Working Capital Management and the profitability of firms listed on the Bombay Stock Exchange in the Indian manufacturing sector. The study implied the generalized two-step methods of moments (GMM) techniques proposed by Arellano and Bond. The sample consists of financial data of BSE-listed companies from 2012 to 2021. The empirical result of the study suggested that the coefficient of CCC and ICP is positive and significant. In contrast, the coefficient of RCP and APP is negative with Tobin's Q. In the case of ROCE, the coefficient of CCC, ICP, RCP, and APP of positive and significant with Return on Capital Employed. Unlike previous studies that showed a linear relationship between WCM and firm profitability, this study discovered an inverse relationship. This study offers new evidence for an inverted U-shaped relationship between working capital investment and corporate profitability in India. In addition, this work employs GMM to control any endogeneity issues.

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Modelling the Impact of Corporate Risk Management on Firms Financial Performance and Sustainable Growth: Evidence Grounded on Emerging and Developed Countries

Cited by 4 publications

References 0 publications

Examining the Moderating Effect of Earnings Management on the Association between Working Capital Management and Firm’s Financial Performance: Evidence from Egypt

Examining the Moderating Effect of Earnings Management on the Association between Working Capital Management and Firm’s Financial Performance: Evidence from Egypt

The Impact of Firm Financial Fundamentals on Stock Performance: An Empirical Evidence on Indonesian Telecommunication Sector

Impact of working capital management on profitability of Indian manufacturing companies

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