| dc.description.abstract | The effective of working capital management on profitability of company has been a controversial issue recently since there exist many opposite findings about this. To clarify this, I have conducted on my own a study investigating the relationship between working capital management and firms’ profitability between two countries by taking sample of 40 manufacturing firms listed on HOSE in Viet Nam and 40 others listed on Tokyo Stock Exchange in period of 2013-2016. Variables taken to test this relationship include return on asset (ROA) used as dependent variable; average collection period (ACP), average age of inventory (AAI) and average payment period (APP) used as independent variables and firm size (FS), debt ratio (DR), sales growth (SG) used as control variables. The findings show positive relationship between AAI and ROA, CCC and ROA; and no significant relationship between ACP and ROA or APP and ROA. After that, comparing Viet Nam and Japanese is necessary to find out whether survival of relation of working capital management of two countries each other. It is suggested that since the results are not true for every situation, companies of every country then need to consider every aspect of firms’ and differences about structure or business environment before deciding which method they should follow. | en_US |
