Exploring the Relationship between Working Capital Management, Profitability and Capital Structure

Objective – This paper explores the relationship between working capital management (WCM), profitability and capital structure. A preliminary framework provides an understanding of the role of WCM components with capital structure and profitability. Methodology/Technique – From the review of empir...

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Main Authors:	Abdussalam, Abdalla Geth, Mohd Ridzuan, Darun
Format:	Article
Language:	English
Published:	Global Academy of Training & Research (GATR) Enterprise 2017
Subjects:	HF Commerce
Online Access:	http://umpir.ump.edu.my/id/eprint/15403/ http://umpir.ump.edu.my/id/eprint/15403/ http://umpir.ump.edu.my/id/eprint/15403/1/fim-2017-riduan-Exploring%20the%20Relationship1.pdf

id	ump-15403
recordtype	eprints
spelling	ump-154032017-03-13T05:39:05Z http://umpir.ump.edu.my/id/eprint/15403/ Exploring the Relationship between Working Capital Management, Profitability and Capital Structure Abdussalam, Abdalla Geth Mohd Ridzuan, Darun HF Commerce Objective – This paper explores the relationship between working capital management (WCM), profitability and capital structure. A preliminary framework provides an understanding of the role of WCM components with capital structure and profitability. Methodology/Technique – From the review of empirical studies it is confirmed that WCM is a main component in the financial aspects of the firms as even though WCM is targeted for the short-term decisions it has effect on the firm for the long-run. Findings – Companies need to use working capital policy and procedures in order to navigate performance. Emphasizing on WCM would lead to formal cost controls and performance together with firm’s growth and productivity. The framework is set to help financial manager of the firms to balance the costs and benefits of debt and equity and reduce common obstacles on managing cash flows for long-term fixed investment. Novelty – The preliminary framework is original and unique that will contribute towards the enrichment of relevant literature. Practically, this study contributes to provide a better understanding of the managers and enable them to apply WCM strategies and make sure the firm is able to meet the stakeholder requirements. Global Academy of Training & Research (GATR) Enterprise 2017 Article PeerReviewed application/pdf en http://umpir.ump.edu.my/id/eprint/15403/1/fim-2017-riduan-Exploring%20the%20Relationship1.pdf Abdussalam, Abdalla Geth and Mohd Ridzuan, Darun (2017) Exploring the Relationship between Working Capital Management, Profitability and Capital Structure. Accounting and Finance Review, 2 (1). pp. 38-45. ISSN 0128-2611 http://www.gatrenterprise.com/GATRJournals/afr_vol2_2017_issue1.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	HF Commerce
spellingShingle	HF Commerce Abdussalam, Abdalla Geth Mohd Ridzuan, Darun Exploring the Relationship between Working Capital Management, Profitability and Capital Structure
description	Objective – This paper explores the relationship between working capital management (WCM), profitability and capital structure. A preliminary framework provides an understanding of the role of WCM components with capital structure and profitability. Methodology/Technique – From the review of empirical studies it is confirmed that WCM is a main component in the financial aspects of the firms as even though WCM is targeted for the short-term decisions it has effect on the firm for the long-run. Findings – Companies need to use working capital policy and procedures in order to navigate performance. Emphasizing on WCM would lead to formal cost controls and performance together with firm’s growth and productivity. The framework is set to help financial manager of the firms to balance the costs and benefits of debt and equity and reduce common obstacles on managing cash flows for long-term fixed investment. Novelty – The preliminary framework is original and unique that will contribute towards the enrichment of relevant literature. Practically, this study contributes to provide a better understanding of the managers and enable them to apply WCM strategies and make sure the firm is able to meet the stakeholder requirements.
format	Article
author	Abdussalam, Abdalla Geth Mohd Ridzuan, Darun
author_facet	Abdussalam, Abdalla Geth Mohd Ridzuan, Darun
author_sort	Abdussalam, Abdalla Geth
title	Exploring the Relationship between Working Capital Management, Profitability and Capital Structure
title_short	Exploring the Relationship between Working Capital Management, Profitability and Capital Structure
title_full	Exploring the Relationship between Working Capital Management, Profitability and Capital Structure
title_fullStr	Exploring the Relationship between Working Capital Management, Profitability and Capital Structure
title_full_unstemmed	Exploring the Relationship between Working Capital Management, Profitability and Capital Structure
title_sort	exploring the relationship between working capital management, profitability and capital structure
publisher	Global Academy of Training & Research (GATR) Enterprise
publishDate	2017
url	http://umpir.ump.edu.my/id/eprint/15403/ http://umpir.ump.edu.my/id/eprint/15403/ http://umpir.ump.edu.my/id/eprint/15403/1/fim-2017-riduan-Exploring%20the%20Relationship1.pdf
first_indexed	2023-09-18T22:20:02Z
last_indexed	2023-09-18T22:20:02Z
_version_	1777415595127472128

Exploring the Relationship between Working Capital Management, Profitability and Capital Structure

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