Abstract
The paper aims to determine factors that make a significant impact on working capital management of a manufacturing company in Bangladesh. Of 221 service and manufacturing firms listed on the Dhaka Stock Exchange, 109 companies are chosen based on data availability for the five-year period 2014-2018. The study examines literature on working capital management and tests theory on manufacturing companies listed on the Dhaka Stock Exchange. Cash conversion cycle is used as a measurement of working capital efficiency. Financial ratios representing six aspects of company's financial performance are taken as explanatory variables. They represent company asset management, debt structure, growth, liquidity, profitability, and size. The paper runs multivariate regression and correlation on the 545 firm-year observations in the panel data. Multicollinearity among the final statistically significant explanatory variables has also been tested. It is observed that company growth, profitability, and leverage can significantly explain company working capital efficiency in the manufacturing industry of Bangladesh.
Keywords
financial ratios, cash conversion cycle, manufacturing industry, Dhaka Stock Exchange
Chinese Abstract
孟加拉制造企业营运资金管理:哪些因素具有显著影响?
本文旨在确定哪些因素对孟加拉国制造业公司的营运资金管理具有显著影响。在达卡证券交易所上市的221家服务和制造业公司中，根据2014年至2018年五年期间的数据可用性选择了109家公司。本研究参考了营运资金管理方面的文献，并对在达卡证券交易所上市的制造公司进行了理论检验。现金转换周期被用来衡量营运资金效率的指标。代表公司财务绩效的六个方面的财务比率被作为解释变量，包括公司的资产管理、债务结构、增长、流动性、盈利能力和规模。本文对面板数据中的545个公司年度观测数据进行了多元回归和相关分析；并对最终具有统计显著性的解释变量之间的多重共线性也进行了检验。研究发现，公司的成长性、盈利能力和杠杆可以显著解释孟加拉国制造业的公司营运资本效率。
关键词：财务比率，现金转换周期，制造业，达卡证券交易所
ORCID Identifiers
Sumaiya Zaman: https://orcid.org/0000-0001-9535-6605
DOI
10.5038/2640-6489.7.2.1198
Recommended Citation
Zaman, S. (2022). Working capital management of manufacturing companies in Bangladesh: What factors make significant impact?. Journal of Global Business Insights, 7(2), 140-150. https://www.doi.org/10.5038/2640-6489.7.2.1198
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License
