Digital Repository

The effect of the working capital management on profitability of Sri Lankan companies

Show simple item record

dc.contributor.author Dharmasena, N.W.G.N.P.
dc.date.accessioned 2015-11-13T04:38:33Z
dc.date.available 2015-11-13T04:38:33Z
dc.date.issued 2015
dc.identifier.citation Dharmasena, N.W.G.N.P. 2015. The effect of the working capital management on profitability of Sri Lankan companies. Proceedings of the Undergraduates Research Conference, Department of Accountancy, University of Kelaniya, Sri Lanka. en_US
dc.identifier.uri http://repository.kln.ac.lk/handle/123456789/10296
dc.description.abstract Most firms have a large amount of cash invested in working capital, as well as substantial amounts of short- term payables as a source of financing. Therefore working capital mainly affect for the company profitability and liquidity. A well-managed working capital promotes a company’s wellbeing on the market in terms of liquidity and it also acts in favor for the growth of shareholders value (Jeng - Ren, Li & Han-Wen, 2006). Management of these short- term assets and liabilities warrants a careful investigation since the working capital management plays an important role for the firm’s profitability & risk as well as value (Smith, 1980). The main objective of this research is to find out the relationship between working capital management and company profitability. To collect the required financial data of these firms was obtained from the companies’ annual reports from CSE. Consequently, the sample data begins in 2010 and ends in 2014. The effects of working capital management on the firm's profitability are modeled using the following OLS regression equations to obtain the estimates. This study expects most of the Sri Lankan companies have large amounts of cash invested in working capital. It can be expected that the way in which working capital is managed will have a significant impact on profitability of those firms. en_US
dc.language.iso en en_US
dc.publisher Department of Accountancy, University of Kelaniya en_US
dc.subject Working capital management en_US
dc.subject Profitability en_US
dc.subject Colombo stock exchange en_US
dc.title The effect of the working capital management on profitability of Sri Lankan companies en_US
dc.type Article en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search Digital Repository


Browse

My Account