A study on the interrelation between working capital administration and performance among construction companies in Malaysia / Nur Hasyimah Raimy

• Main Author: Raimy, Nur Hasyimah
• Format: Student Project
• Language: English
• Published: Faculty of Business and Management 2018
• Subjects: Capital. Capital investments; Organizational effectiveness. Performance measurement; Malaysia
• Online Access: http://ir.uitm.edu.my/id/eprint/21168/1/PPb_NUR%20HASYIMAH%20RAIMY%20M%20BM%2018_5.pdf; http://ir.uitm.edu.my/id/eprint/21168/

The purpose of this study is to examine the interrelation between working capital management and performance of construction companies in Malaysia from 2006 to 2016 in quarterly. Five selected companies in construction sector used for this study are IJM Corporation Bhd, Gamuda Berhad, Mudajaya Group Bhd, Muihibbah Engineering and WCE Holdings Berhad. The Panel Regression Fixed Effect Model is used as an empirical model in this study to investigate the interrelation between Account Receivable Days (ARD), Inventory Days Held (INV), Debt Ratio (DR) and Current Ratio (CR). There are some tests involved in the study which includes Descriptive statistic, Unit Root Test, Regression Analysis and Diagnostic Test. In unit root test, the study used Levin, Lin, Chin (LLC) Test and Hadri Test. Meanwhile, diagnostic tests consist of Normality test, Multicollinearity test and Autocorrelation test.