The Nexus Between Inventory Management and Firm Performance: A Saudi Arabian Perspective

• 발행기관: 한국유통과학회
• 저자명: Abdul Wahid Ahmed HASHED Abdul Rahman SHAIK
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 9 No.6, 297~302쪽, 전체 6쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.06.30

영문 초록

The current study examines the relationship between inventory management efficiency and financial performance in Saudi Arabian companies. The study collected data from the companies listed on Tadawul (a Saudi Arabian stock exchange) during the period starting from 2016 and ending in 2020. The study uses pooled regression model by incorporating Return on Assets (ROA) and Inventory Turnover Ratio (ITR) as a performance measurement variable and inventory conversion period as an inventory management variable to report the results. The results show a positive and significant association between inventory management and firms’ financial growth measured in terms of Return on Assets (ROA). Further, the study reports a positive and significant association between the inventory conversion period and inventory turnover (ITR). This shows that managing inventory efficiently shall positively impact the firm’s performance. The other variables, such as debt ratio and gross profit, are positively related to ROA and negatively correlated with ITR. The firm growth is positively associated with both the dependent variables. The results suggest that the management of inventory in Saudi Arabian firms is efficient. Further, the firm size is positively associated with ROA and ITR. This shows a nexus between inventory management efficiency and firms’ financial growth in Saudi Arabian companies.

목차

1. Introduction

2. Literature Review

3. Methodology

4. Results

5. Discussion

6. Conclusion

References

키워드

Inventory Turnover Ratio Inventory Conversion Period Return on Assets Firm Growth Financial Performance