Empirical Testing of Working Capital Administration on firm’s Corporate Profitability: Evidence from Chinese Non-Financial Firms

Authors

  • Yaqoob Ahmad
  • Dr Alam Rehman
  • Arif Hussain
  • Iqbal ud din

Keywords:

Working capital management, profitability, Chinese non-financial firms

Abstract

This study spotlight the impact of working capital management on profitability of Chinese nonfinancial firms. Panel data of 1213 non-financial firms has been used and obtained from Resset
Database for a period 2007-2016. In this study dependent variable was profitability and
measured by ROE and ROA while independent variables were average receivables in days,
inventory turnover in days, cash ratio, debt ratio, size and growth. The study employed Fixed and
Random effect models and concluded that average receivable in days, inventory turnover in
days, account payables in days and current ratio has negative effect while sales growth and
leverage has a positive effect on profitability.

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Published

2021-12-21

Issue

Vol. 4 No. 1 (2018)

Section

Articles

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