Interdisciplinar y Behavior and Social Sciences – Lumban Gaol (Ed.)
© 2015 Taylor & Francis Group, London, ISBN 978-1-138-02735-0
An empirical study of working capital management efficiency
A. Ahmadijoo, S.Z.A. Rasid, R. Basiruddin & B.A. Bakar
International Business School, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia
ABSTRACT: This study investigates the effect of working capital management on firms’ performance by
employing gross operating margin as accounting performance ratio. Cash conversion cycle, accounts receivable,
inventory turnover, and accounts payables are working capital proxies and we control over the firms’ size, sales
growth, and leverage. We use Fixed/Random effect and Generalized Method of Moments estimations for a
sample ...