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Impact of Working Capital Management on Financial Performance: Evidence from Plantation Sector Companies in Sri Lanka

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dc.contributor.author Jeyanthini, S.
dc.contributor.author Rubika, M.
dc.date.accessioned 2015-12-03T03:46:41Z
dc.date.available 2015-12-03T03:46:41Z
dc.date.issued 2015
dc.identifier.citation Jeyanthini, S. and Rubika, M. 2015. Impact of Working Capital Management on Financial Performance: Evidence from Plantation Sector Companies in Sri Lanka. 6th International Conference on Business & Information ICBI – 2015, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka. en_US
dc.identifier.issn 2465-6399
dc.identifier.uri http://repository.kln.ac.lk/handle/123456789/10538
dc.description.abstract Working capital management (WCM) is an integral part of financial management and management of working capital may have a significant impact on the profitability. This study explores the effect of working capital management on financial performance in Sri Lanka covering the period of 2009-2014, based on a sample drawn from the listed plantation companies. The sample comprises of 15 plantation companies listed on the Colombo stock exchange (CSE). In order to examine the effects of WCM on financial performance, the ROA and ROE were used as measures for financial performance while cash conversion cycle, current assets to total assets and current liabilities to total assets were used as measure of working capital management. Data of the selected firms which are listed in the CSE were obtained from their websites. Pearson’s correlation and regression analysis are used in drawing empirical evidence to answer the research questions of the study. The results depict that there is a significant and negative association between CCC and financial performance, measured by ROE (P = -0.041, < 0.05) and ROA (P= -0.048, < 0.05). Which indicate that, as the cash conversion cycle increases it would tend to reduce the financial performance of the company. The results derived from this research signify that the might able to raise their profits by diminishing the time period for the debtors and inventories so that, time period for payables would increase. en_US
dc.language.iso en en_US
dc.publisher Faculty of Commerce and Management Studies, University of Kelaniya en_US
dc.subject Working Capital Management en_US
dc.subject Financial performance en_US
dc.subject Cash Conversion Cycle en_US
dc.subject Colombo Stock Exchange en_US
dc.title Impact of Working Capital Management on Financial Performance: Evidence from Plantation Sector Companies in Sri Lanka en_US
dc.type Article en_US


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