Determinants of working capital management: electrical and electronic industry in Malaysia / Nurul Jannah Jamaludin

This study attempts to find the variables that determine working capital of electrical and electronic industry in Malaysia. The sample of the study is 21 public listed companies of electrical and electronic industry in Malaysia. The dependent variable is working capital ratio, while independent vari...

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Bibliographic Details
Main Author: Jamaludin, Nurul Jannah
Format: Thesis
Language:English
Published: 2016
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/95487/1/95487.PDF
https://ir.uitm.edu.my/id/eprint/95487/
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Summary:This study attempts to find the variables that determine working capital of electrical and electronic industry in Malaysia. The sample of the study is 21 public listed companies of electrical and electronic industry in Malaysia. The dependent variable is working capital ratio, while independent variables are profitability, leverage, firm size and operating cash flow. The data is from 1999 to 2014 and they were taken through the OSIRIS database. The data have been tested in STATA by using several methods such as descriptive analysis, Pearson correlation analysis, pooled ordinary least square analysis, fixed effect panel analysis, random effect panel analysis, Breusch and Pagan Lagrangian multiplier test and hausman test. The study found that the profitability and firm size have positive significant relationship with working capital ratio, while leverage and operating cash flow have negative significant relationship with working capital ratio. These findings are consistent with several previous studies.