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The statistics in this table are based on annual panel data of U.S. listed firms from WRDS merged with CRSP/Compustat files for the period between 1985 and 2017
Source publication
This study investigates the possible nonlinear relationship between working capital and credit rating. Furthermore, it examines the relationship between the three components of working capital (inventory, accounts receivable, and accounts payable) and a firm’s credit rating. Employing data for U.S listed firms for the period between 1985 and 2017,...
Citations
... WCM concept pertains to how rms manage their current assets and liabilities, and this policy comprises two elements: the level of investment in current assets and the means of nancing current assets. When selecting the most suitable policy, rms try to obtain an optimal level of working capital, depending on the trade-off between risks and return (Yahaya & Bala, 2015; Abuhommous et al., 2022). In the absence of adequate liquid assets in place, the rm is unable to discharge its nancial obligations on time Beemnet, 2018). ...
Working capital management is an important financial management decision for the profitability of commercial banks. The purpose of this study is to examine the impact of working capital management on commercial banks' profitability. The study used secondary data from audited financial statements of five private commercial banks in Ethiopia covering the period from 2011 to 2020. The banks were selected on a convenience basis. The financial information from the banks was analysed to determine the impact of the current ratio, bank size, a current asset to total asset ratio, loans and advances to total asset ratio, and current liabilities to total assets Ratios on profitability. The researchers applied descriptive statistics and inferential statistics. The data were analysed using the Stata data processing package. An econometric model is applied to examine the impact of working capital management on the profitability of commercial banks. A random effect model was employed and the result revealed that bank size and loans and advances to total assets were found to have a significant impact on banks' profitability. The current ratio, a current asset to total asset ratio, and current liabilities to total assets Ratios were found insignificant to influence banks' profitability. Since the profitability of the banks depends on working capital management, rigorous attention should be given to those factors that influence the profitability of commercial banks.
... If the budget approval of funds does not comply with the principle of objectivity, or if the approval is not passed or the approval is not timely, it may lead to a loss of rationality in the allocation of funds among various departments of the listed company, which will reduce the capital efficiency, and may even cause serious damage. As a result, the Group's reputation has been affected to a certain extent [7]. ...
In order to improve their competitiveness in the market, listed companies have transformed from the original single production management to the centralized production management mode, and realized the optimization and integration of the internal resources of the enterprise. With the change of enterprise management mode, its capital risk has also changed. Listed companies adopt the same standard in capital management and use. This paper analyzes the capital management risk of listed companies under the centralized management mode, identifies the capital management risk from the perspectives of budget, allocation and settlement, and proposes a capital management risk prevention strategy according to the risk content.
Inventory leanness requires that firms minimize inventory mistreatment and misuse. A firm performance deteriorates because of high inventory misuse, and because of such an issue, the effect on the firm’s credit rating can also be seen. This study examines the effect of inventory leanness on firms’ credit ratings. It aims to create an understanding of the relationship between inventory leanness and the firm’s financial performance and provides insight into the credit rating system of Pakistan. We analyze secondary Pakistan data between 2008 and 2017. Among the sixty firms on Pakistan Stock Exchange that are rated by PACRA, only thirty-eight have complete data available on their respective websites. By using panel data analysis, the results indicate that inventory leanness and credit ratings are positively related. In an added analysis, we evaluate the financial performance in the context of credit rating by using control variables (size, leverage, and capital intensity ratio) and dummy variables (loss and subordinate debt). Our results are consistent with earlier studies.
