Capital Management Research Articles

Long-Term Impact of Mergers and Acquisitions on Firm Performance: A Panel Data Study

Purpose - This study aims to examine the long-term impact of mergers and acquisitions (M&As) on firm performance, particularly within the pharmaceutical industry. Using a panel data regression model, the study assesses how key financial ratios such as Net Profit Margin, Return on Capital Employed (ROCE), Debt to Equity Ratio, and Enterprise Value influence postmerger firm performance over time. Design/methodology/approach - A panel data approach has been conducted using data from 10 pharmaceutical companies from their post-merger period, focusing on the effects of M&As on firm performance as measured by Net Profit Margin. Financial ratios related to profitability, liquidity, and valuation were used as independent variables. Findings - The study finds that M&As have a positive long-term impact on firm performance, particularly in companies with strong Earnings per Share (EPS), efficient capital management, and good liquidity. ROCE, Debt to Equity Ratio, and Current Ratio were significant predictors of improved Net Profit Margin, highlighting the importance of financial efficiency and debt management in the post-merger phase. Research limitations/implications - The focus on the pharmaceutical industry limits the generalizability of the findings to other sectors. Future studies should examine a broader range of industries to better understand the effects of M&As across different contexts

A comprehensive review of treasury management practices and their impact on corporate sustainability in emerging economies: Strategic insights from the oil and gas sector

Treasury management practices are critical for ensuring financial stability and fostering corporate sustainability, particularly in the volatile oil and gas sector of emerging economies. This comprehensive review examines the relationship between treasury management practices and corporate sustainability, focusing on strategic insights that can be drawn from the oil and gas industry. The review highlights the importance of effective cash management, risk assessment, and liquidity optimization as key components of successful treasury operations. The study categorizes treasury management practices into several essential areas, including cash flow forecasting, working capital management, investment strategies, and risk management frameworks. Each category is analyzed concerning its contribution to corporate sustainability, emphasizing the need for a holistic approach that aligns financial objectives with environmental and social considerations. The findings indicate that robust treasury management practices can significantly enhance operational resilience, improve resource allocation, and support long-term sustainability initiatives. Furthermore, the review discusses the challenges faced by oil and gas companies in emerging economies, such as economic instability, regulatory uncertainty, and fluctuating commodity prices. These challenges necessitate the adoption of innovative treasury strategies that not only safeguard financial assets but also promote sustainable business practices. By integrating sustainability metrics into treasury decision-making, companies can better manage risks associated with environmental regulations and stakeholder expectations. Additionally, the role of technology in modernizing treasury management is examined, particularly in terms of digital tools and platforms that enhance data analysis and decision-making capabilities. The review underscores the potential for fintech solutions to streamline treasury operations and improve transparency, thereby contributing to enhanced corporate sustainability. In conclusion, this review provides strategic insights into the interplay between treasury management practices and corporate sustainability in the oil and gas sector of emerging economies. The insights presented herein are intended to guide industry practitioners in developing effective treasury strategies that foster sustainable growth while addressing the unique challenges of the emerging market context.

Pengaruh Working Capital Management terhadap Profitabilitas Perusahaan Manufaktur Indeks LQ-45

Every organization that is profit-oriented or non-profit, regardless of the size and nature of its business, requires a number of working capital. Working capital is the most important factor for maintaining liquidity, survival, solvency and profitability of the business. Working capital management is one of the most important areas when making comparisons between a company's liquidity and profitability, which involves a decision on the number of current assets and asset financing. The efficiency of working capital management is very important especially for manufacturing companies, where most of its assets consist of current assets. This directly affects the profitability and liquidity of the company. The trade off between liquidity and profitability is important because if working capital management is not given, companies tend to fail and face bankruptcy. The importance of efficient working capital management is undoubted. Because working capital provides strength for each economic and management unit which is considered to be one of the most important functions of corporate management. Therefore, given the importance of working capital management management this research was focused on evaluating the effect of working capital on profitability, in the LQ45 index manufacturing company for the 2003-2007 period. Key Words: working capital management, profitability, manufacturing LQ45Y index

FranchiseGlobal.com Business Development Strategy: Analysis Using Financial Planning at FranchiseGlobal.com

This research aims to analyze the business development strategy of FranchiseGlobal.com through a comprehensive financial planning approach. As a digital platform offering franchise and business opportunities, FranchiseGlobal.com aspires to become the leading and innovative online franchise media. The research analyzes short-, medium-, and long-term financial planning to achieve profitability and business sustainability. A qualitative descriptive method and thematic analysis were employed for data analysis. The study examines key financial planning elements, including revenue planning, cost management, capital requirements, and five-year financial projections. The results show that sound financial planning can help the company achieve profitability targets within five years, indicated by a positive NPV, IRR above 10%, and a payback period of less than four years. The company's projected revenue growth is expected to remain stable through diversification of revenue streams and efficient capital management. The study concludes that appropriate financial strategies will be a crucial foundation for FranchiseGlobal.com to become Indonesia's leading digital franchise platform.

An integrated approach using discrete event simulation and design of experiments for working capital management in the fuel retail trade

ABSTRACT This study introduces an innovative approach to Working Capital Management (WCM) in the fuel retail sector, using Discrete Event Simulation (DES) and Design of Experiments (DOE). Efficient WCM is essential for small businesses, particularly in fuel retailing with its tight margins and intense competition. Unlike static financial tools relying on historical data, DES interacts with indicators such as Working Capital Requirement (WCR) and Liquidity Ratios, providing stochastic and accurate information. The study examined three variables (Supplier Payment Deadline, Credit Card Receipt Deadline, and Customer Payment Profile) across 16 experimental scenarios. The Payment Term to Suppliers emerged as the key factor in reducing WCR. Despite lower liquidity potential, the company balanced short-term obligations, identifying optimal WCM scenarios. The study shifts WCM analysis from static data to forecasted, real-time data, supporting dynamic business decision-making. It concludes that DES is a valuable tool for effective WCM in fuel retail, encouraging further research.

Effects of Working Capital Management on Small-Sized Businesses in Competitive Environments with Economic Policy Uncertainty—A Case Study Applied to Chilean Companies

Working capital is a strategic resource that not only enhances financial performance but also ensures the long-term sustainability of organizations, especially SMEs. In the context of evolving economic policies and the challenges of gender equity affecting Chilean companies, this study explores how economic policy risk (EPU) and CEO characteristics influence working capital, which are essential investments for sustainable growth. The analysis covers 12,839 SMEs from 2014 to 2019. Using a fixed-effects panel data model, the findings reveal that firms tend to increase their investment in working capital in response to rising economic policy uncertainty. However, the relationship follows a non-linear inverted U-shaped pattern, which suggests the existence of an investment optimum between working capital and the EPU. Considering the level of competition, companies increase their investment in working capital when the level of competition is higher. Regarding the gender and age of CEOs, it is observed that women invest less in working capital, as do young CEOs. These results underscore the importance of EPU, along with the gender and age of CEOs, as key factors in promoting sustainable working capital management.

Working capital analysis optimises business management efficiency-young aspiring entrepreneurs’ perspective

The study aims to explain the relationship between the effectiveness of a business and its management through the analysis of working capital. The findings prove the complementary relationship. The analysis of working capital will always have a significant impact on the effectiveness of business management. The main objective of any corporation is to be effective in business, which can be achieved by analyzing the working capital. The result shows that analysis of working capital based on factors like operational efficiency, the company’s earnings and profitability, cash management, corporate receivable management, and corporate inventory management creates room for improvement and effectiveness in business management. Firms might enhance finances for business expansion by lowering their working capital requirements. It has also been revealed that there is a considerable difference in industries across time. It was observed that there is a high association between working capital efficiency and firm profitability. A highly efficient corporation is less vulnerable to liquidity risk and is also self-sufficient in terms of external finance. Numerous studies have been done to regulate the true rapport between working capital investments and their impact on financial presentation. It demonstrates that effective investment in working capital management may boost profitability and business value. The relationship between accounting and finance was explained by measuring working capital management in demand to illustrate the status of profitability. It was suggested that accountants take a more professional approach to updating their accounting and finance skills in their organization through effective working capital management.

Measurement of development level of digital transformation of banks in Northwest China

Abstract. In the current era, the digital economy has become an important opportunity for commercial banks. In order to keep up with the pace of The Times, build a solid foundation of science and technology finance, and promote the economic development of the Northwest region, this paper adopts the analytic hierarchy process and fuzzy comprehensive evaluation method to explore the influential factors of the digital transformation of banks in the Northwest region. The analysis shows that net capital, operating income and loan-to-deposit ratio have the greatest impact on the digital transformation of banks. In terms of digital transformation of banks in Northwest China, Shaanxi Province and Gansu Province have a better development level, Qinghai Province and Ningxia Hui Autonomous Region are relatively average, and Xinjiang Uygur Autonomous Region Province is relatively backward. Based on this, the paper puts forward suggestions to improve the level of capital management, optimize the structure of deposits and loans, and promote income diversification.

Tracking Research Trends in Working Capital Management: A Ten-Year Bibliometric Review Based on Dimensions AI Database

This study examines trends in working capital management (WCM) research over the past decade, focusing on key contributors and significant themes. Utilizing data from the Dimensions AI database, we provide an overview of WCM from 2015 to 2024. A systematic review methodology guided our literature gathering, beginning with a keyword search on October 18, 2024, using terms like "working," "capital," "management," and "trend." The final dataset comprised 198 peer-reviewed articles and conference proceedings, ensuring the robustness of our findings. Our analysis reveals fluctuating publication trends, peaking at 35 publications in 2021, followed by a decline in recent years. Key authors, including Pais et al. and Parker et al., emerged as influential figures, with substantial contributions from institutions such as the Ghulam Ishaq Khan Institute and Hamad Bin Khalifa University. The United States and Pakistan lead in research output. Additionally, bibliographic coupling networks highlight clusters focusing on profitability, gaps in empirical research, digitalization in supply chain finance, and practices in family firms. The findings underscore the growing importance of effective WCM in enhancing organizational performance while identifying gaps, particularly in developing economies. Future research should address these gaps to improve both academic discourse and practical applications in the field.

The Role of Managerial Competencies in Higher Education: Navigating Current Transformational Trends

Objective: This study investigates the managerial competencies required in the field of higher education in response to contemporary transformational trends. The main goal is to explore how these competencies are shaped by the ongoing digital transformation, strategic management approaches, and the shift towards entrepreneurial university models. Theoretical Framework: The research draws on key concepts related to digital leadership, human capital development, and Agile management. Theories of educational management and models of intellectual capital are employed to frame the investigation and provide a comprehensive understanding of the changing dynamics in higher education. Method: A qualitative and mixed-methods approach was utilized, incorporating data from reports, surveys, and contemporary studies on digital competencies, hybrid learning, and leadership in educational institutions. The study includes both theoretical analysis and empirical data collection through case studies and expert assessments. Results and Discussion: The findings reveal that digitalization and the transition to blended learning environments are driving the need for new managerial skills. These skills include digital leadership, strategic decision-making, and the ability to balance traditional and online educational models. The discussion highlights the importance of flexible management approaches, such as Agile, in addressing these emerging challenges. Research Implications: The study provides practical and theoretical insights into how higher education institutions can adapt their leadership strategies to meet the demands of digitalization. These findings have implications for educational policy, institutional governance, and the development of leadership training programs. Originality/Value: This research contributes to the growing body of literature on higher education management by offering a fresh perspective on the evolving competencies required in today’s digital age. The value lies in its focus on the intersection of digital transformation and managerial competencies, offering practical solutions for enhancing leadership in higher education.

The Impact of Mergers and Acquisitions on Technological Innovation of Enterprises: Taking Apple as an Example

As market competition becomes increasingly fierce, in order to maintain a leading position in the industry, companies must enhance their core competitiveness to gain priority discourse power in the market. Corporate mergers and acquisitions are the act of acquiring property rights of other legal entities through certain economic means on the basis of equality, voluntariness, and equal compensation. They are a major form of capital operation and management for enterprises. This article aims to study the impact of mergers and acquisitions on technological innovation in enterprises, by analyzing the financial statements of enterprises and exploring the impact of mergers and acquisitions on their main business. Research has found that mergers and acquisitions are a business tool that can effectively enhance a company's technological level without increasing profits, while using less time cost. This provides a reference for enterprises to enhance their market competitiveness, differentiate their products, and adjust their business strategies.

Development and Application of an Employee Moral Quotient (MQ) Evaluation Index System for Chinese Petroleum Enterprises

Recognizing the critical role of oil and gas resources as strategic assets and acknowledging the increasing emphasis on green development and social responsibility driven by international energy agreements and the “dual carbon” strategy, this study addresses the urgent need for a robust employee evaluation framework within China’s petroleum sector. While existing systems often prioritize competence-based indicators, they frequently overlook the crucial aspect of employee Moral Quotient (MQ). This research focuses on developing and validating a holistic, scientifically grounded, multi-dimensional, and dynamic MQ evaluation index system tailored specifically for Chinese petroleum enterprises. The study employed a mixed-methods approach, integrating a comprehensive literature review, semi-structured interviews with industry experts, and robust quantitative techniques, including the Analytic Hierarchy Process (AHP) and the entropy weight method. A two-round Delphi study, involving 18 experts from six provinces across China, ensured broad representation and facilitated the construction of the evaluation index system and the determination of indicator weights. The Delphi process achieved a high degree of expert consensus, evidenced by a 100% questionnaire response rate in both rounds, expert authority coefficients of 0.851 and 0.879, respectively, and Kendall’s coefficient of concordance of 0.243 and 0.247 (p < 0.01), respectively, demonstrating strong reliability and scientific validity. The resulting MQ evaluation index system comprises eight first-level indicators and thirty-three s-level indicators, encompassing key dimensions of employee morality relevant to the petroleum industry. This comprehensive system provides a robust and objective tool for employee selection, training, performance evaluation, and career development within Chinese petroleum enterprises, supporting informed decision-making in human resource management and fostering a culture of ethical conduct and sustainable development. Furthermore, the developed framework offers valuable insights and serves as a potential model for petroleum enterprises and other resource-intensive industries globally seeking to integrate MQ assessment into their human capital management strategies.

Building A Sharia Entrepreneurial Ecosystem Through Halal Value Chain for MSMEs

Independent entrepreneurs promise certain material benefits if the entrepreneur succeeds in running the business. Sharia business and economic patterns are still a big challenge and opportunity to be implemented in Indonesia. Creating a sharia-based entrepreneurial ecosystem is very important for MSME players to be aware of so that they can optimize the business they run according to Islamic law and God's provisions. This halal value chain is a sharia economic sector that plays an important role in economic progress in Indonesia. However, for Indonesia, halal is an economic potential that has not been exploited optimally. One thing that supports building a sharia entrepreneurial ecosystem and is able to increase sales value is by carrying out halal certification on the products it makes. The Community-Based Empowerment Partner in this activity is UMKM Wijayakusuma Sejati assisted by Jatisawit Village Bumiayu Brebes. The aim of this service is (1) to provide partner knowledge in creating a sharia-based entrepreneurial ecosystem and mentality, (2) to provide production and marketing knowledge, (3) to provide business capital management competence, (4) to provide knowledge about production and marketing, management competence business capital, bookkeeping and preparation of financial reports, and (5) facilitating halal certification for Wijayakusuma Sejati MSME products. This training is needed for traders to create a sharia entrepreneurial mentality and halal certification based on the halal value chain so they are able to manage their business well, create a brand image for their products, and increase sales significantly.

Unpacking the Impact of Asset Structure and Sales Growth on Capital Structure: The Moderating Influence of Profitability

This study explores the impact of asset structure and sales growth on capital structure, emphasizing the moderating influence of profitability. As firms navigate the complexities of financing decisions, understanding how these variables interact is crucial for optimizing capital structure. The findings reveal that asset structure and sales growth significantly affect capital structure, with profitability playing a critical role in moderating these relationships. Firms with substantial tangible assets are better positioned to leverage debt financing, while those demonstrating strong sales growth are viewed favorably by investors and creditors. However, the extent to which sales growth influences capital structure is contingent upon profitability; high profitability enables firms to capitalize on growth opportunities, whereas low profitability may inhibit their capacity to leverage growth potential. Empirical research supports these conclusions, indicating that asset structure, sales growth, and profitability significantly shape capital structure decisions across various industries. Ultimately, this study provides valuable insights for financial managers, highlighting the importance of balancing growth aspirations with profitability to achieve effective capital structure management. This, in turn, can lead to sustained competitive advantage, a state where a firm outperforms its competitors over a prolonged period in a dynamic economic environment.

Human Capital Management and Organizational Performance in United Bank for Africa Plc. Uyo, Akwa Ibom State

The study was designed to examine the relationship between human capital management and organizational performance ty.ectiveness in organization'toor management of personnel.ibilities , assignment of the right jobs to wrong and unqin United Bank for Africa Plc, Uyo, Akwa Ibom State. To achieve this objective, survey research design was adopted for this study. The population of the study consisted of management staff, senior staff and junior staff of the United Bank for Africa Plc. Uyo, Akwa Ibom State which is made up of 82 staff with sample size of 68 staff. The study utilized Taro Yamane Scientific technique. The instrument used for data collection was Human Capital Management and Organizational Performance Questionnaire (HCMOPQ). Tables, Mean, Standard Deviation and Pearson Product Moment Correlation Coefficient were adopted as analytical tools for this study. Two hypotheses were tested at 0.05 level of significance. The result of the study showed that there was a positive significant relationship between human capital management and organizational performance in United Bank for Africa Plc, Uyo, Akwa Ibom State. The result of the findings also revealed that organizational performance is dependent on the extent of its staff training and timely appraisal of employees. This implies that increased investment in staff training and timely appraisal of employees by the bank would yield greater returns in organizational performance.

Pengaruh Financial Distress pada Trade Credit Provisions pada Perusahaan Manufaktur di BEI

Purpose: (IDX) period 2018-2023 by focusing on Financial Distress conditions on Trade Credit Provisions. Financial distress is identified through delisting conditions due to negative net income and book value and inappropriate management decisions. Methodology: Through a quantitative approach with 46 samples of companies selected based on stratified random sampling and purposive sampling methods. Results: The results of the analysis show that there is a significant negative relationship between financial difficulties and accounts payable and there is a significant negative relationship between financial difficulties and accounts receivable in the shares of manufacturing sector companies on the IDX. Limitations: The limitations of this research are only on financial distress and manufacturing sector companies 2018-2023 Contribution: It is therefore worth considering a deeper exploration of how internal mechanisms, such as working capital management and financing strategies, play a role in determining trade credit policies.

A Phenomenological Study of Street Vending in Downtown Area, Tacloban City

This study investigates street vendors' lived experiences in downtown Tacloban City, Philippines, focusing on their economic contributions, challenges, and coping mechanisms in the informal sector. Street vendors play an important role in urban economies by making goods and services more accessible and affordable, as well as providing livelihood opportunities for people with few job options. Despite their economic importance, street vendors frequently face legal and social challenges, such as harassment and a lack of recognition from the government. Using a phenomenological approach, the study seeks to fill a gap in the literature on the financial practices and capital management techniques of street vendors in Tacloban City. The study looks into the factors that influence the prevalence of street vending, its impact on vendors' livelihoods and well-being, and the strategies vendors use to overcome daily operational challenges. The findings are expected to guide policy interventions aimed at improving the quality of life and economic resilience of street vendors. Amartya Sen's Human Agency Theory, Deci and Ryan's Self-Determination Theory, and Hernando de Soto's Informal Economy Theory all serve as foundations for the analysis. These frameworks provide a thorough understanding of the agency, motivation, and economic dynamics of street vendors. The study's findings are intended to benefit street vendors, policymakers, community initiatives, and future research by fostering a more inclusive and supportive environment for urban informal economies.

Synergy between multidimensional intellectual capital and digital knowledge management: Uncovering innovation performance complexities

This paper aims to deepen our understanding of the contingency and complex interrelations between multidimensional intellectual capital (IC), technology-based knowledge management (KM), and innovation outcomes in the rapidly changing business environment. More particularly, we investigate causal recipes for high innovation performance consisting of traditional IC components (human capital, structural capital, relational capital), the three more recently emerging IC dimensions (renewal capital, entrepreneurial capital, trust capital), and digital KM practices. This study adopts neo-configurational perspective and fuzzy-set qualitative comparative analysis (fsQCA) to explore multiple conjunctural causations of innovation performance using survey data collected from 102 publicly listed enterprises in Taiwan. Although the four identified archetypes (causal recipes) indicate that all IC dimensions and digital KM are potential collaborators contributing to high innovation performance, they also emphasize the critical role of digital KM in leveraging relational and trust capital for superior innovation performance. Human, structural, entrepreneurial, and renewal capital seems to be a supporting chorus for open and collaborative innovations in the digital era.

A Study On Labour Welfare Practices In Suprajit Automotive Pvt Ltd, Bengaluru

Labour Welfare and Social Security has got tremendous significance with Public Sector, Private Sector and also Multinational Companies. The aspect of Labour Welfare requires a serious thought and also a honest and open approach that Money and Good Environment given to Employees never go waste. The Motto is take care of Employees and Workers and the Employees and Workers will take care of the Organisation. Employee oriented management has become a highly successful management in the Corporate Sector in India as well as in the Global arena. A happy employee is naturally a productive employee. The function of Human Capital Management is changing significantly in the present digital era. In response to the changing nature of the Workforce, Globalisation and rapid advancement in Technology, HR leaders are adopting innovative approaches and cutting-edge technologies to enhance Organisational effectiveness and enable employees to give their best. In this background, a detailed study has been conducted on the Labour Welfare Practices adopted at Suprajit Automotive Pvt Ltd, Bengaluru. Primary Data collected through a Structured Questionnaire administered to 100 respondents covering all departments and levels has revealed that the Company is providing satisfactory Welfare and Social Security amenities to its employees and Workers. However, there are certain areas where the respondents have expressed dissatisfaction and partial satisfaction. It will be in the interest of the company to look into these areas and take necessary remedial steps

Study on the Tort of Misrepresentation in the Inter-bank Bond Market--Taking Case No. 1 of the Beijing Financial Court as an Example

Chinese interbank bond market dates back to June 1997, when the People's Bank of China decided to open an interbank bond trading business at the National Interbank Lending Center, which was formally established. In the following years, this market developed relatively fast, and in June 2002, the bond counter market of commercial banks began to operate, which to a certain extent made the interbank bond market, which institutional investors dominate, expand through the counter trading for all kinds of investors in the whole society.In recent years, applying direct financing tools such as corporate bond issuance has become increasingly widespread. This paper takes Beijing Financial Court Case No. 1 as an example to study in detail the important reasons for the emergence of this type of infringement, focusing on the obligations and responsibilities of each participant, including the issuer Dalian Machine Tool Group, the intermediary bank Industrial Bank, and the investor Bluestone Capital Management. This paper aims to sort out the obligations and responsibilities of each participant in the inter-bank bond market to find out the reasons for the emergence of the phenomenon of misrepresentation and to explore the issues that appear to be suitable for this paper to find out the causes of misrepresentation, explore the operation rules and risk prevention measures of the interbank bond market that are suitable for China's national conditions, to solve the problems of misrepresentation, standardize the obligations and responsibilities of all parties, and promote the development of China's interbank bond market.