The Relationship between Working Capital Management and Profitability: A Case Study of Tobacco Industry of Pakistan

• 발행기관: 한국유통과학회
• 저자명: Hussain Muhammad Ashfaq U Rehman Muhammad Waqas
• 간행물 정보: 『KODISA ICBE (International Conference on Business and Economics)』2016 International Conference on Business and Economics (ICBE 2016), 427~429쪽, 전체 3쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2016.06.30

영문 초록

Firms can use working capital management which is one of the essential determinants to influence their profitability. The main theme of present study is to investigate the relationship between working capital management and profitability of Tobacco Industry of Pakistan. This study is based on secondary data collected from financial statements of selected companies of Tobacco Industry of Pakistan for the period of 2005-2014. For data analysis, both descriptive and inferential statistics were used. Correlation analysis is used to check the relationship between the variables, while multiple regression analysis is used to examine the effects of working capital management on profitability of firms. The result reveals that there is a strong negative relationship between variables of working capital management and profitability of Tobacco Industry of Pakistan. This means that as the cash conversion cycle increases, it will lead to declining of firm profitability and managers can create a positive value for shareholders by reducing the cash conversion cycle at optimal level. The study concludes that managers can create value for shareholders by managing the working capital well designed and implemented, and by keeping each components of it at optimal level.

목차

Abstract

1. Introduction

2. Research Methodology

3. Hypotheses

4. Conclusions

References

키워드

Working Capital Management Profitability Tobacco Industry Pakistan