Working Capital Management and Firm Performance: Evidence From Malaysia During COVID-19

Abstract

When it comes to the history of economic expansion, the management of working capital is widely regarded as an essential component of business success worldwide. Both before and throughout COVID-19, it is clear that companies operating in each area are inconsistent with one another. In this study, ten years' worth of data from 2012 to 2021 is collected from three different industries in Malaysia. The purpose of this research is to investigate how certain businesses have been able to sustain good performance over the years, even during a worldwide crisis that has affected the economy of the entire world. We chose these three industries-technology, consumer goods, and healthcare-because they have demonstrated the highest level of consistency in business performance over the years. The primary purpose of this research is to ascertain the reasons behind specific industries' success and identify the aspects of working capital management that are the most important contributors to the performance of businesses before and even after the COVID-19 outbreak. In general, the findings indicated that working capital is essential in driving the company's profitability.