Working capital management and its influence on profitability and sustainable growth

Nastiti, Pambayun Kinasih Yekti; Atahau, Apriani Dorkas Rambu; Supramono, Supramono

doi:10.3846/btp.2019.06

Cited by 55 publications

(58 citation statements)

References 25 publications

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“…In general, previous studies confirm the obtained results (Huang and Zhang [ 8 ], Utami and Gunawan [ 19 ], Rahim [ 16 ], Mukherjee and Som [ 12 ], Nastiti, Atahau, and Supramono [ 13 ]). In addition, the modification of the company growth model proposed by the authors significantly increased the sample, due to the fact that the calculation of SGR4 became possible for companies that do not have dividend payments.…”

Section: Discussionsupporting

confidence: 83%

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Financial Aspects of Companies Sustainable Growth

Frolova

Борисова

Lazarev

2020

Lecture Notes in Networks and Systems

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The article is devoted to the problems of evaluating the companies growth. The authors study the theory and methodology of approaches to the concept of sustainable growth and variations of factorological dependencies that form the value of decision-making indicators to ensure the necessary growth depending on the companies financial results. The authors justify the choice of indicators and growth models based on criteria, the main of which is the rate of profit reinvestment as the basis of companies financial stability. The level of profit reinvestment primarily depends on the life cycle of companies, and the choice of the optimal growth rate, determined by the growth model, is the basis for sustainable development of companies. The universality of the models is confirmed by the possibility of their application regardless of the availability of companies shares, dividend payments and organization forms, which allowed the authors to reduce the restrictions on the sample. The models were tested on the example of the largest mining companies. The dynamics of average values of growth indicators reflected changes in general market trends, which confirms that the growth of large system-forming companies is the main factor in the growth of the state’s economy as a whole.

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Section: Discussionsupporting

confidence: 83%

“…Based on it, the authors argue that working capital needs to be managed to increase profitability. This will allow for sustained growth [ 13 ].…”

Section: Methodsmentioning

confidence: 99%

Financial Aspects of Companies Sustainable Growth

Frolova

Борисова

Lazarev

2020

Lecture Notes in Networks and Systems

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“…Similarly, the United Nations' understanding of SD is based on the same three components, which are given an equal value (Burton, 1987;Freymann, 2012). Most researchers recognise the system of the three SD components as acceptable and the best method of reflecting the interactions between systems (Lozano, 2008;Thompson, 2007;Roseland, 2000;Smit & Smithers, 1993;Epstein et al, 2015;Elzen et al, 2017;Abdi et al, 2018;Ciobanu, et al, 2019;Nastiti et al, 2019). With the recognition that the principle structure of the SES process consists of the above three components, the scientific literature includes extensive analyses focused on the proportions of these components in the development process.…”

Section: Overview Of the Assessment Methods For The Sustainable Develmentioning

confidence: 99%

Quantitative Assessment of the Compatibility of the Development of Socioeconomic Systems

Ginevičius¹

2019

JOC

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In the conditions of market economy all business entities, which can be viewed as socioeconomic systems (SES), must be competitive. This also applies to the regions in the country. From the regions competitiveness depends effective solving of a whole range of social problems: jobs, social welfare, crime, migration and etc., in turn country region's competitiveness depends on how it is adjusted its economic, social and ecological development. It's important because it could be that some of the development components are developing at other component's expenses. For example, economic development could be at social and ecological expenses. This would prevent the creation of the necessary living conditions not only today, but also for future generations. In order to survive, an SES must be constantly developing. During this development, both quantitative and the qualitative changes of the system parameters take place. The quantitative changes are reflected by the development dynamics, which encompass the equability and the intensity; while the qualitative changes are reflected by changes in the internal structure of the development process. For a system to be able to function in the long term, the quantitative development of its components must be mutually compatible. However, the existing measurements of SES development do not take this into account. The aim of the article is to propose and approve a methodology that would allow quantitatively evaluate the sustainability of the country regions development. For this purpose the multi-criteria evaluation methods are used. Based on the proposed methodology the sustainability of the country regions economic development is identified.

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“…The size of companies is related to their growth that should be, therefore, linked to the liquidity-profitability relationship. Nastiti et al [2019] examined the determinants of working capital management and tested different effects of the determinants based on an enterprise size and age. The findings reveal that sales and economic growth determine working capital management.…”

Section: Literature Overviewmentioning

confidence: 99%

Liquidity – Profitability Trade-Off on the Example of Companies Listed on Main and Alternative New Connect Markets on Warsaw Stock Exchange

Bolek

Pluskota

Wolski

2020

FiPF

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The goal of this paper is related to the liquidity and profitability relationship analysis and their maxima assessment in the companies listed in the main and alternative markets of Warsaw Stock Exchange. The trade-off between maximum profitability and liquidity is the result of value maximization and bankruptcy prevention strategies and this approach is expected to be similar in all listed companies due to investors’ expectation. It has been found that there is no difference in management goals in the markets taken into consideration and companies in both research samples maximize profitability within a conservative approach to the liquidity. The maximum liquidity, on the other hand, is determined with a similar level of profitability as measured by ROE on the main market of WSE and NewConnect.

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Working capital management and its influence on profitability and sustainable growth

Cited by 55 publications

References 25 publications

Financial Aspects of Companies Sustainable Growth

Financial Aspects of Companies Sustainable Growth

Quantitative Assessment of the Compatibility of the Development of Socioeconomic Systems

Liquidity – Profitability Trade-Off on the Example of Companies Listed on Main and Alternative New Connect Markets on Warsaw Stock Exchange

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