Working capital management during the global financial crisis: the Australian experience

Abstract

Purpose -This paper aims to document the measures taken by Australian corporate treasurers in the areas of cash, inventory, accounts receivable, accounts payable and risk management to survive the global financial crisis (GFC). Design/methodology/approach -Using qualitative techniques like interviews and a survey questionnaire, this paper summarises the various measures adopted by working capital managers. Findings -The results show that more than half of the participants in the survey altered their working capital management practices during the crisis. Capital expenditure was curtailed, as they aimed at preserving their cash levels while reducing inventory levels. Credit worthiness of institutions became more important, and there was a general decline in credit availability. The results also show that Australian working capital managers exhibit behavioural biases, particularly overconfidence. Originality/value -It is the first paper that uses open-ended questions to capture the effects of the GFC on working capital management in Australia.

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“…2008 finansal krizi sonrasında, çalışma sermayesinin etkin yönetiminin firmaların rekabet gücü kazanmasında önemli bir araç olduğu ortaya çıkmıştır. Ramiah ve Zhao (2014) çalışma sermayesi ve global kriz arasındaki ilişkileri inceleyen bir çalışma yapmışlardır. Bu çalışmada iki önemli sonuca ulaşılmıştır.…”

Fleksibilitas Keuangan melalui Manajemen Modal Kerja pada Perusahaan Manufaktur dalam Kondisi Ketidakpastian

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“…Perusahaan-perusahaan yang terbatas secara finansial menjadi kedala dalam menghadapi krisis, sedangkan perusahaan yang mempunyai flesibilitas keuangan berpeluang mempersiapkan diri untuk krisis di masa depan dengan lebih baik (Ang & Smedema, 2011). Tingkat aktiva lancar yang rendah juga dapat memberikan permasalahan terhadap persediaan kas dan likuiditas serta memberikan berbagai kesulitan operasi terutama dalam kondisi krisis (Ramiah et al, 2014). Tingkat kas sebelum krisis yang tinggi tidak berdampak positif pada nilai perusahaan selama krisis, tetapi tingkat hutang sebelum krisis yang tinggi berdampak negatif pada nilai perusahaan selama krisis keuangan (Mura & Marchica, 2010).…”

“…dagang, pinjaman berelasi. Hutang jangka pendek memberikan dukungan persediaan kas dan likuiditas serta memberikan dukungan operasional perusahaan (Ramiah et al, 2014). Peningkatan hutang digunakan untuk bertahan dan keberlanjutan operasional pada proyek-proyek investasi dengan risiko rendah.…”

Linking Working Capital Policy Towards Financial Performance of Small Medium Enterprise (SME) in Malaysia

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