Working capital management entities

У роботі розглядаються теоретичні основи управління оборотними коштами суб'єктів господарювання. Проведений аналіз практики управління оборотними коштами в ТОВ «Телекарт-Прилад». Здійснене обґрунтування моделі фінансування оборотних коштів на підприємстві, обґрунтовані шляхи удосконалення управління дебіторською заборгованістю на підприємстві, запропоновані напрями оптимізації управління запасами та грошовими коштами підприємства.В работе рассматриваются теоретические основы управления оборотными средствами субъектов хозяйствования. Проведенный анализ практики управления оборотными средствами в ООО «Телекарт-Прибор». Осуществлено обоснование модели финансирования оборотных средств на предприятии, обоснованы пути совершенствования управления дебиторской задолженностью на предприятии, предложены направления оптимизации управления запасами и денежными средствами предприятия.The paper discusses the theoretical framework of working capital management of business entities. The analysis of the practices of working capital management in LTD "Telecard-Device". The justification of the model of funding working capital in the enterprise, the ways of improvement of accounts receivable management in the enterprise, directions of optimization of inventory management and cash enterprises

Determinants of working capital management: evidence from Malaysia

Working capital management is a part in firm's financial decision. Inefficient in managing it consequently affect firm value. Managers should consider all factors that affect working capital management. Therefore, this study investigates the determinants of working capital management of listed firms in Malaysia for the period 2000-2006. Cash conversion cycle is used as comprehensive measure of working capital management. Results indicate that firm size, debt ratio, growth of the company, economic growth and inflation associates with firm's working capital management

How do market imperfections affect working capital management?

This paper examines whether Working Capital Management (WCM) is sensitive to market imperfections such as asymmetric information, agency conflicts or financial distress. We find that firms have a target investment in working capital and that they take decisions in order to achieve this. In addition, the results appear to support the hypothesis that the working capital competes with investment in fixed assets for the funds of the firms when they have financial constraints. Finally, we also find that WCM depends on bargaining power and other financial factors such as the availability of internal finance, cost of financing and access to capital markets. Este artículo analiza si la gestión del capital circulante está afectada por las imperfecciones de mercado tales como la asimetría informativa, los conflictos de agencia o las dificultades financieras. Los resultados muestran que las empresas tienen un nivel de inversión en capital circulante objetivo y toman decisiones con el fin de alcanzarlo. Además, los resultados parecen apoyar la hipótesis de que el capital circulante compite con los activos fijos por los fondos de las empresas cuando éstas tienen restricciones financieras. Finalmente, la gestión del capital circulante depende del poder de negociación y otros factores financieros tales como la disponibilidad de financiación interna, el coste de financiación y el acceso a los mercados de capitales.ciclo de efectivo, gestión del capital circulante, imperfecciones de mercado, datos de panel net trade cycle, working capital management, market imperfections, panel data

Does Working Capital Management Affect Profitability of Ghanaian Manufacturing Firms?

This paper analyses the link between working capital management and profitability of firms in the context of developing economies. A balanced panel consisting of eleven (11) manufacturing firms listed on the Ghana Stock Exchange covering the period of 2011-2017 was used. The link between working capital management and profitability was examined using dynamic panel regression (Arellano-Bond Estimation) technique. The study revealed that there is a significant positive linear relationship between working capital management and firms’ profitability. The findings also reveal the existence of a concave quadratic relationship between working capital management and firms’ profitability. There is an optimal level at which working capital management maximises firm’s profitability, therefore, managers need to ensure that they operate within the limits of the optimal level by implementing an effective and efficient working capital management policy. The study concludes that, the practice of an aggressive working capital management policy maximizes a firm’s profitability

Working Capital Management and Solvency of the Industries in Bangladesh

The goal of a firm is to maximize its wealth maximization and it is important for the financial manager to take the right decision to utilize its investment efficiently and effectively. One of the crucial decisions is the working capital management which is made by the financial manager. The challenge is that every firm should maintain the optimum working capital management by which the shareholders’ wealth can be maximized. This study focused on the working capital management of different types of industries in Bangladesh and covers the difference between the solvencies of different industries. Moreover, it also represents the profitability of different industries in compare with the working capital management. It is important to manage the working capital management; otherwise, the firm may suffer in insolvency which may result in bankruptcy. Keywords: Working Capital Management, Liquidity, Solvency, Profitability, Cash Conversion Cycle