| dc.description.abstract | The paper is aimed to examine the impacts of working capital management (WCM) on profitability (OPA) of Real estate firms listed on Vietnam Stock Exchange. In this paper I utilized different variables for the analysis of working capital management and firm profitability in Vietnam for a sample of 51 firms of Real estate sectors for the period of 5 years from 2011 to 2015.
By implementing researched methods such as Pool OLS, FEM, REM, FGLS with panel data, the thesis has studied the effect of different variables including the Average collection period (ACP), Inventory turnover in days (ITID), Average payment period (ACP) and Cash conversion cycle (CCC) on the performance of Vietnamese firms. Current liquidity ratio (CR), debt ratio (DR), size of firm (SIZE), short-term debt to total assets ratio (CLTAR), financial assets to total assets ratio (FATA) and variation of sales (VARS) have been used as control variables.
This thesis found that there existed the paradoxical effects between Average Collection Period, Average Payment Period, Inventory Turnover in Days with profitability. This implies that companies can increase their profits by shortening the period of collection from clients, payment from vendors and the inventory. In addition, the thesis also examined positive relations between Current Ratio, Current Liabilities to total assets ratio, Financial assets to total assets ratio and firms’ profitability. Besides, Debt ratio and Firms’ size have negative impact on profitability. Therefore, managers can generate greater profitability for their company by correctly handling the cash conversion cycle and keep its various components to an optimum level.
Key word: Working Capital Management, Profitability, Cash Conversion Cycle, real estate sectors. | en_US |
