Effects of working capital management on firm performance and firm value – A study of the fisheries industry in Vietnam

Authors

  • Vo Thi Quy
    International University –Vietnam National University HCMC, Viet Nam
  • Le Thi Minh Nguyen
    Van Hien University, Viet Nam

DOI:

10.46223/HCMCOUJS.econ.en.7.2.184.2017

Keywords:

Cash conversion cycle; Fisheries industry; Vietnam stock market; Working capital Management.

Abstract

This research investigates the effects of working capital management through cash conversion cycle and its components (average receivable days - ARD, average inventory days – AID, and average payable days - APD), along with the effects of the working capital management policies on firm performance and firm value in the fisheries industry. Generalized Method of Moment (GMM) was applied with the data collected from 21 fisheries companies listed on Vietnam's stock market in the period 2008 -2012. The research found that the cash conversion cycle, average receivable days, average inventory days, and average payable days have a negative impact on firm performance (ROA) and firm value (Tobin'Q). The research results also showed that aggressive working capital policy has a negative impact, but the conservative working capital policy has a positive impact on firm performance and firm value of fisheries selected companies.

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References

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Received: 14-04-2020
Accepted: 14-04-2020
Published: 01-11-2017

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How to Cite

Quy, V. T., & Nguyen, L. T. M. (2017). Effects of working capital management on firm performance and firm value – A study of the fisheries industry in Vietnam. HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, 7(2), 42–52. https://doi.org/10.46223/HCMCOUJS.econ.en.7.2.184.2017

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Copyright (c) 2017 Vo Thi Quy; Le Thi Minh Nguyen

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.