The Impact of Working Capital Management on Firm Value: Evidence from a Frontier Market

Arachchi, A.N.H.; Perera, W.; Vijayakumaran, R.

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dc.contributor.author	Arachchi, A.N.H.
dc.contributor.author	Perera, W.
dc.contributor.author	Vijayakumaran, R.
dc.date.accessioned	2019-02-01T08:17:56Z
dc.date.accessioned	2022-06-28T03:52:10Z
dc.date.available	2019-02-01T08:17:56Z
dc.date.available	2022-06-28T03:52:10Z
dc.date.issued	2017
dc.identifier.issn	1946-052X
dc.identifier.uri	http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/1238
dc.description.abstract	Corporate finance literature and finance practitioners have the notion that the efficient working capital management (WCM) affects firm value. This study investigates the value effect of working capital management, using a sample of 44 listed companies on the Colombo Stock Exchange (CSE) over the period 2011-2015. The CSE is currently recognized as a high growth frontier market (FM) in the world. The efficiency of WCM is measured using the Cash Conversion Cycle (CCC) and its components while firm value is measured by the Tobin Q ratio. The firm size, leverage and sales growth are used as the control variables. Using panel data regression methodology (the pooled OLS and fixed effects regressions), the study finds that CCC is inversely related to Tobin Q, suggesting that managers can create value for their shareholders by efficiently managing investment in working capital of their firms.	en_US
dc.language.iso	en	en_US
dc.publisher	Asian Journal of Finance & Accounting	en_US
dc.subject	Working capital management	en_US
dc.subject	firm value	en_US
dc.subject	Tobin Q,	en_US
dc.subject	cash conversion cycle	en_US
dc.title	The Impact of Working Capital Management on Firm Value: Evidence from a Frontier Market	en_US
dc.type	Other	en_US