Capital Management Performance Research Articles

Research on Working Capital Management Performance of Wuliangye from the perspective of supply chain

During the process of the firm's continuing existence and expansion, the working capital of the enterprise, which is the most liquid asset of the business, plays a critical part in the process. The liquor industry has been under the simultaneous strain of market consumption structure upgrade and overcapacity in recent years. Both of these pressures have been a challenge for the sector. As a consequence of this, the amount of competitiveness that exists within the industry has recently increased. Therefore, the industry needs to leave its old way of thinking, which focuses on the management of its internal working capital, and instead pay more attention to the performance that is brought about by coordinating with important firms in the supply chain. This is because performance is directly related to the efficiency of the supply chain. Using Yibin Wuliangye Co., Ltd. as the research object, this paper first examines the internal structure of the company's working capital, then, from the perspective of the supply chain, from the procurement, production, and sales of three links, conducts an in-depth analysis of the status quo of the company's working capital management, discovered that Wuliangye in the management of the working capital of the three links of the problem of occupying too much of the funds of the suppliers, higher production costs, and the reduction of contractual liabilities. In conclusion, it provides targetedrecommendations for optimisation with the purpose of enhancing Wuliangye's capability to adequately manage its working capital and promoting the long-term growth of the company.

Research on the operational capital management performance of real estate enterprises under the background of high-quality developmen

Taking Vanke Real Estate as the research object, this study uses entropy weight method and grey relational analysis to quantitatively evaluate its working capital management performance from three dimensions: profitability, riskiness, and liquidity. The results show that during the period from 2021 to 2023, Vanke ranks behind Poly in terms of comprehensive grey relational degree ranking, indicating inferior working capital management performance compared to Poly. Based on the above analysis results, this study provides insightful suggestions for optimizing the working capital management strategies of real estate companies. It serves as a theoretical reference for improving the working capital management performance of real estate enterprises and promoting their high-quality development.

Digital Transformation and Non-Financial Performance in Manufacturing

In the context of the digital economy era, can digital transformation promote the improvement of non-financial performance of manufacturing enterprises? Taking Shanghai and Shenzhen A-share listed manufacturing firms from 2012 to 2021 as instances, this paper decomposes non-financial performance from five dimensions: innovation performance, ESG performance, working capital management performance, organizational resilience, and corporate market competitiveness, and examines the effects and mechanisms of the digital revolution on manufacturing companies’ non-financial performance via empirical analysis. The findings are as follows: (1) digital transformation of manufacturing enterprises plays a significant positive role in innovation performance, ESG performance, working capital management performance, organizational resilience, and corporate market competitiveness, and (2) digital transformation can promote the improvement of non-financial performance of manufacturing enterprises by improving the quality of internal control. In addition, the heterogeneity analysis results show that digital transformation contributes more to the non-financial performance of non-state-owned manufacturing enterprises. The study conclusion can provide experience for promoting the sustainable development of manufacturing enterprises and driving high-quality economic development.

Working Capital Management in Different Sector

Effective working capital management is crucial for the financial health and sustainability of businesses across industries. This research paper aims to investigate and compare the working capital management practices adopted by companies in different sectors. The study employs a mixed-methods approach, combining quantitative analysis of financial data with qualitative insights gathered through interviews with industry experts. The research analyzes the working capital management performance of companies operating in various sectors, including manufacturing, retail, technology, and services. Key metrics such as liquidity ratios, inventory turnover, receivables collection period, and payables deferral period are evaluated to assess the efficiency and effectiveness of working capital management strategies employed by firms in each industry. Furthermore, the paper examines the impact of industry-specific factors such as demand volatility, supply chain dynamics, technological advancements, and regulatory environments on working capital management practices. By comparing and contrasting the findings across different industries, this study provides valuable insights into the factors influencing working capital management decisions and identifies best practices that can be adapted by companies to optimize their working capital efficiency and enhance overall financial performance. The research contributes to the existing literature by offering a comprehensive analysis of working capital management practices across diverse industries, highlighting industry-specific challenges and opportunities. The findings of this study have practical implications for managers, investors, and policymakers seeking to improve working capital management strategies and enhance the competitiveness and resilience of businesses in today's dynamic economic landscape.

A Web-Based Expert System Application for Working Capital Management

The aim of this study is to develop an expert system application called SME Emergency for working capital management (WCM) in Small and Medium-Sized Enterprises (SMEs). SME Emergency performs financial analyses for WCM and thus evaluates the WCM performance of the enterprise. There is no independent audit obligation for SMEs operating in Turkey. Therefore, the data of 283 enterprises listed in the BIST All Shares between 2012 and 2020 were used in the development of this application since they do not differ in terms of working capital characteristics, and the data of publicly traded enterprises are subject to independent auditing. The SME Emergency presents the general performance of the enterprise about WCM. In addition, it evaluates the success of the enterprise according to the industry within the framework of WCM determinants and presents its position compared with enterprises in the industry. In this context, the enterprise’s financial performance in terms of WCM can be interpreted, and suggestions can be made in the case of unsuccess.

Supply chain risk management based on enterprise performance analysis

In order to reasonably strengthen the risk management of supply chain, the author proposes a method based on enterprise performance analysis. Taking China Mobile and China Unicom as examples, on the basis of analyzing the performance principles of supply chain working capital management, mainly from the two aspects of factors and channels, the working capital management of the two companies is comprehensively analyzed, and the differences in the working capital management performance of the two telecom operators from the perspective of supply chain are deeply analyzed, when conducting business management, it is necessary to pay more attention to the management of working capital, divide working capital from the perspective of supply chain, adopt targeted strategies for working capital management, and conduct scientific analysis of working capital performance to reduce the financial risk of enterprises. The author studies the performance improvement strategy of working capital management based on the perspective of supply chain, in order to improve the economic benefits of enterprises.

Does the efficiency of working capital management affect a firm’s financial distress? Evidence from UAE

PurposeThis study aims to explore the relative efficiency of the working capital management (WCM) for Emirati firms before and during the coronavirus crisis. Next, this study explores the potential impact of WCM on the likelihood of financial distress.Design/methodology/approachA data envelopment analysis (DEA) was applied to assess the relative efficiency of the WCM. This study uses the emerging market Z-score model to predict the likelihood of financial distress. The logistic regression was applied to investigate the impact of the efficiency of WCM on firms’ financial distress.FindingsThe results of this study model showed a negative and significant influence of the efficiency of WCM on firms’ financial distress likelihood.Practical implicationsThe findings have important implications for many stakeholders, including decision makers, WC managers, financiers, investors, financial consultants, researchers and others, in increasing their awareness of firms’ WCM performance before and during the crisis. Further, the results could have implications for trading strategies as investors seek attractive economic gains from their investment in firms that care about WCM.Social implicationsThe implications of WCM performance on social interests would cause firms’ decision makers to operate efficiently and achieve the best practices to minimise the probability of firms' financial distress.Originality/valueThis study advances a novel contribution to the literature by introducing a novel model to assess WCM based on DEA technology.

Analysis of the Effects of Financial Sharing on Enterprise Working Capital Management: Taking Sinochem Holdings’ Financial Sharing Model as an Example

Recently, rapid economic and technological progress has forced innovation in financial strategies and organizational structures to match better the endogenous requirements of expanding companies and businesses. This study focuses on the financial sharing model that has gained much attention in recent years and examines the changes in the working capital management performance of Sinochem Holdings during its different development periods of financial sharing from 2012 to 2019. It finds that the implementation of Sinochem Holdings’ financial sharing model positively impacts its working capital management performance at different degrees and company development stages. The financial sharing model significantly improves the quality of financial information and process efficiency and enhances the efficiency of corporate financial processes and process standardization. In this case, companies strengthen the integration of corporate resources and hasten the dissemination of capital and information flows, thus improving working capital management performance. Finally, this study provides relevant comments for enterprises, government and industry, and accounting personnel.

Target adjustment model and new working capital management performance measure: Evidence from Croatia

The paper develops a dynamic panel model of target adjustment in order to investigate the determinants of the cash conversion cycle of companies in manufacturing, trade, and information and communication industries in the Republic of Croatia for the period 2008-2015. The emphasis is on examining the significances and the speeds of the adjustment processes of the cash conversion cycles of companies subsamples by industry and size. Due to the adjustment costs, the results show that the observed companies gradually adjust their current cash conversion cycles to the target ones. In addition, these adjustments were slow, which can be explained by the predominance of the adjustment costs over the costs of being in disequilibrium. Moreover, the results of this study indicate that the rate of adjustment varies among companies from different industries and size categories. The differences in market power allow companies to change more easily the components of the cash conversion cycle. As a result, they enable faster convergence to their target levels. Besides the lagged cash conversion cycle, tested potential determinants that significantly affect the cash conversion cycles of Croatian companies in selected industries, although with different robustness, are company size, company growth, return on assets, fixed asset investments, financial leverage and the growth of the real gross domestic product. Finally, the paper presents a new measure for working capital management performance.

Working Capital Management and Firm Performance

This study examines the relationship between working capital management (WCM) and firm performance during and after the financial crisis of 2007-2008 in Nigeria. During the crisis, lending conditions were deeply affected, and financing operations became challenging for firms. Although research findings on the causes and effects of the crisis on the economy are known, what remains unknown is whether the financial crisis had a significant impact on WCM performance. This knowledge is essential for developing resilience to withstand a possible crisis in the future because vulnerability remains high as a result of the deepened integration of many economies. Thus, this study addresses this issue using a sample of 675 firm-year observations from listed firms on the Nigerian stock exchange for the period from 2007 to 2015. The differences between the two periods, the crisis period and then after the crisis period, is operationalised through two analyses. First, OLS regression analysis was conducted to determine the explanatory powers of WCM for the two periods via their R2s. Second, a test of difference using the Cramer Z-statistic for the two periods was conducted. The findings indicate that WCM variables have more explanatory power (R2) in the period after the crisis than during the crisis. Also, the results revealed that the Z-scores are significant, implying that a significant difference existed between the two periods. This means that WCM was affected during the financial crisis and led to low profitability, whereas, during the after-crisis period, WCM associates with higher profitability.

Preface to the Volume 2 Issue 2 of Indian Pacific Journal of Accounting and Finance

Preface to the Volume 2 Issue 2 of Indian Pacific Journal of Accounting and Finance

Accounting Education, Knowledge Management and Working Capital Management Performance: Evidence from China

With the advent of the era of knowledge economy, skills training, knowledge acquirement and management are increasingly combined with business management practices. There is preliminary evidence show that the education, learning and management of accounting knowledge have a significant correlation with the enterprise performance. Based on the theory of accounting education and knowledge management, this paper investigates the influence of internal control on the performance of working capital management from the perspective of internal control acquisition, direct learning and indirect learning. The empirical study on China’s capital market shows that with the improvement of accounting education and knowledge management, the quality of internal control of enterprises will also be improved, furthermore, the performance of working capital management will be obviously improved. The conclusion of this paper not only enriches the literature in the field of accounting education and knowledge management, but also provides the crucial evidence that how Chinese enterprise can improve the rationality and scientificity of working capital management decision.

Working capital management performance of firms listed on Bursa Malaysia

This research paper investigated the working capital management (WCM) performance of 252 firms listed on Bursa Malaysia and identifed practices and policiesfor WCM to enhance efficiency in cash flow from operations. It also determined whether the size, profitability, inventory, and the current assets financing policy could enhance the WCM performance. The variables were 'Cash Conversion Efficiency' (CCE), afinancial performance measure, and 'Overall Working Capital Performance Ranking', a non-financial performance indicator. The findings revealed that the inventory, size, and profitability had significantly influenced the WCM performance. It was also identified that there was a mild positive relationship between the aggressive methodofworking capital financing and the CCE; and the ideal WCM practices and working capital (WC)financing policies to be adopted in firms to maximise the wealth ofthe shareholders.

Working capital management performance of firms listed on Bursa Malaysia

This research paper investigated the working capital management (WCM) performance of 252 firms listed on Bursa Malaysia and identifed practices and policiesfor WCM to enhance efficiency in cash flow from operations. It also determined whether the size, profitability, inventory, and the current assets financing policy could enhance the WCM performance. The variables were 'Cash Conversion Efficiency' (CCE), afinancial performance measure, and 'Overall Working Capital Performance Ranking', a non-financial performance indicator. The findings revealed that the inventory, size, and profitability had significantly influenced the WCM performance. It was also identified that there was a mild positive relationship between the aggressive methodofworking capital financing and the CCE; and the ideal WCM practices and working capital (WC)financing policies to be adopted in firms to maximise the wealth ofthe shareholders.

Evaluating Capital Management: A New Approach

The objective of this article is to develop a methodology for evaluating capital management performance. We have employed a new methodology, fuzzy rule–based systems (FRBS), that allows evaluators to break down complex systems into manageable components. FRBS can also use a variety of data types by converting data into ordinal input measures that are not overly sensitive to small measurement errors. In developing an overall performance measure, the evaluator under an FRBS creates explicit rules for combining inputs that can reflect the complex contextual judgments commonly made by evaluators. Using survey data on 35 large American cities from the Government Performance Project, we develop an FRBS for city capital management.