Working capital management and corporate performance - Empirical evidence from the listed manufacturing companies of Vietnam

Abstract

As it revolves around mostly short-term investment and financing, Working Capital is usually neglected when making financial decisions. Yet during financial decisions, it is one of the most critical part. Firm value benefits greatly from excellent Working Capital Management. The trade-off among Profitability and Liquidity ought to be controlled accurately in order to achieve optimum Working Capital Management. The main aim of this research is the relationship between the Working Capital Management and corporate Profitability examination. The Cash Conversion Cycle is going to be the measurement for the Working Capital Management. Key words: Working Capital Management; Cash Conversion Cycle; Profitability