激进的营运资本管理政策对企业盈利能力的影响外文文献翻译.docx
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激进的营运资本管理政策对企业盈利能力的影响外文文献翻译.docx
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激进的营运资本管理政策对企业盈利能力的影响外文文献翻译
文献信息:
文献标题:
ImpactofAggressiveWorkingCapitalManagementPolicyonFirms’Profitability(激进的营运资本管理政策对企业盈利能力的影响)
国外作者:
MianSajidNazir,TalatAfza
文献出处:
《TheIUPJournalofAppliedFinance》,2009,Vol.15,PP19-30
字数统计:
英文2669单词,14456字符;中文4407汉字
外文文献:
ImpactofAggressiveWorkingCapitalManagementPolicyonFirms’Profitability
Introduction
Thecorporatefinanceliteraturehastraditionallyfocusedonthestudyoflong-termfinancialdecisions,particularlyinvestments,capitalstructure,dividendsorcompanyvaluationdecisions.However,short-termassetsandliabilitiesareimportantcomponentsoftotalassetsandneedtobecarefullyanalyzed.Managementoftheseshort-termassetsandliabilitieswarrantsacarefulinvestigationsincetheworkingcapitalmanagementplaysanimportantroleinafirm’sprofitabilityandriskaswellasitsvalue(Smith,1980).Efficientmanagementofworkingcapitalisafundamentalpartoftheoverallcorporatestrategyincreatingtheshareholders’value.Firmstrytokeepanoptimallevelofworkingcapitalthatmaximizestheirvalue(Deloof,2003;HoworthandWesthead,2003andAfzaandNazir,2007).
Ingeneral,fromtheperspectiveofChiefFinancialOfficer(CFO),workingcapitalmanagementisasimpleandstraightforwardconceptofensuringtheabilityoftheorganizationtofundthedifferencebetweentheshort-termassetsandshort-termliabilities(Harris,2005).However,a‘Total’approachisdesiredasitcancoverallthecompany’sactivitiesrelatingtovendor,customerandproduct(Hall,2002).Inpractice,workingcapitalmanagementhasbecomeoneofthemostimportantissuesintheorganizationswheremanyfinancialexecutivesarestrugglingtoidentifythebasicworkingcapitaldriversandanappropriatelevelofworkingcapital(Lamberson,1995).Consequently,companiescanminimizeriskandimprovetheoverallperformancebyunderstandingtheroleanddriversofworkingcapitalmanagement.
Afirmmayadoptanaggressiveworkingcapitalmanagementpolicywithalowlevelofcurrentassetsasapercentageoftotalassets,oritmayalsobeusedforthefinancingdecisionsofthefirmintheformofhighlevelofcurrentliabilitiesasapercentageoftotalliabilities.Excessivelevelsofcurrentassetsmayhaveanegativeeffectonthefirm’sprofitability,whereasalowlevelofcurrentassetsmayleadtoalowerlevelofliquidityandstockouts,resultingindifficultiesinmaintainingsmoothoperations(VanHorneandWachowicz,2004).
Themainobjectiveofworkingcapitalmanagementistomaintainanoptimalbalancebetweeneachoftheworkingcapitalcomponents.Businesssuccessheavilydependsonthefinancialexecutives’abilitytoeffectivelymanagereceivables,inventory,andpayables(FilbeckandKrueger,2005).Firmscanreducetheirfinancingcostsand/orincreasethefundsavailableforexpansionprojectsbyminimizingtheamountofinvestmenttiedupincurrentassets.Mostofthefinancialmanagers’timeandeffortsareallocatedtowardsbringingnon-optimallevelsofcurrentassetsandliabilitiesbacktooptimallevels(Lamberson,1995).Anoptimallevelofworkingcapitalwouldbetheoneinwhichabalanceisachievedbetweenriskandefficiency.Itrequirescontinuousmonitoringtomaintainproperlevelinvariouscomponentsofworkingcapital,i.e.,cashreceivables,inventoryandpayables,etc.
Ingeneral,currentassetsareconsideredasoneoftheimportantcomponentsoftotalassetsofafirm.Afirmmaybeabletoreducetheinvestmentinfixedassetsbyrentingorleasingplantandmachinery,whereasthesamepolicycannotbefollowedforthecomponentsofworkingcapital.Thehighlevelofcurrentassetsmayreducetheriskofliquidityassociatedwiththeopportunitycostoffundsthatmayhavebeeninvestedinlong-termassets.Thoughtheimpactofworkingcapitalpoliciesonprofitabilityishighlyimportant,onlyafewempiricalstudieshavebeencarriedouttoexaminethisrelationship.Thisstudyinvestigatesthepotentialrelationshipofaggressive/conservativepolicieswiththeaccountingandmarketmeasuresofprofitabilityofPakistanifirmsusingapaneldatasetfortheperiod1998-2005.Thepresentstudyisexpectedtocontributetobetterunderstandthesepoliciesandtheirimpactonprofitability,especiallyinemergingmarketslikePakistan.
ResearchMethodology
VariablesUsedintheStudy
ThisstudyusesaggressiveinvestmentpolicyasusedbyWeinraubandVisscher(1998),whoanalyzedworkingcapitalpoliciesof126industrialfirmsintheUSmarket.AggressiveInvestmentPolicy(AIP)resultsinminimallevelofinvestmentincurrentassetsversusfixedassets.Incontrast,aconservativeinvestmentpolicyplacesagreaterproportionofcapitalinliquidassetswiththeopportunitycostoflessprofitability.Ifthelevelofcurrentassetsincreasesinproportiontothetotalassetsofthefirm,themanagementissaidtobemoreconservativeinmanagingthecurrentassetsofthefirm.Inordertomeasurethedegreeofaggressivenessofworkingcapitalinvestmentpolicy,thefollowingratiowasused:
wherealowerratiomeansarelativelyaggressivepolicy.
Ontheotherhand,anAggressiveFinancingPolicy(AFP)utilizeshigherlevelsofcurrentliabilitiesandlesslong-termdebt.Incontrast,aconservativefinancingpolicyusesmorelong-termdebtandcapitalandlesscurrentliabilities.Thefirmsaremoreaggressiveintermsofcurrentliabilitiesmanagementiftheyareconcentratingontheuseofmorecurrentliabilitieswhichputtheirliquidityonrisk.Thedegreeofaggressivenessofafinancingpolicyadoptedbyafirmismeasuredbyworkingcapitalfinancingpolicy,andthefollowingratioisused:
whereahigherratiomeansarelativelyaggressivepolicy.
Theimpactofworkingcapitalpoliciesontheprofitabilityhasbeenanalyzedthroughaccountingmeasuresofprofitabilityaswellasmarketmeasuresofprofitability,i.e.,ReturnonAssets(ROA)andTobin’sq.Thesevariablesofreturnarecalculatedas:
Tobin’sqcomparesthevalueofacompanygivenbyfinancialmarketswiththevalueofacompany’sassets.Alowq(between0and1)meansthatthecosttoreplaceafirm’sassetsisgreaterthanthevalueofitsstock.Thisimpliesthatthestockisundervalued.Conversely,ahighq(greaterthan1)impliesthatafirm’sstockismoreexpensivethanthereplacementcostofitsassets,whichimpliesthatthestockisovervalued.Itiscalculatedas:
whereMarketValueofFirm(MVF)isthesumofbookvalueoflongplusshorttermandmarketvalueofequity.Marketvalueofequityiscalculatedbymultiplyingthenumberofsharesoutstandingwiththecurrentmarketpriceofthestockinaparticularyear.
ControlVariables
Inworkingcapitalliterature,variousstudieshaveusedthecontrolvariablesalongwiththemainvariablesofworkingcapitalinordertohaveanappositeanalysisofworkingcapitalmanagementontheprofitabilityoffirms(Lamberson,1995;SmithandBegemann,1997;Deelof,2003;Eljelly,2004;TeruelandSolano,2005andLazaridisandTryfonidis,2006).Onthesamelines,alongwithworkingcapitalvariables,thepresentstudyhastakenintoconsiderationsomecontrolvariablesrelatingtofirmssuchasthesizeofthefirm,thegrowthinitssales,anditsfinancialleverage.Thesizeofthefirm(SIZE)hasbeenmeasuredbythelogarithmofitstotalassets,astheoriginallargevalueoftotalassetsmaydisturbtheanalysis.Thegrowthoffirm(GROWTH)ismeasuredbyvariationinitsannualsalesvaluewithreferencetopreviousyear’ssales[(Salest–Salest–1)/Salest–1].Moreover,thefinancialleverage(LVRG)wastakenasthedebttoequityratioofeachfirmforthewholesampleperiod.Somestudies,likeDeloof(2003)inhisstudyoflargeBelgianfirms,alsoconsideredtheratiooffixedfinancialassetstototalassetsasacontrolvariable;however,thisvariablecannotbeincludedinthepresentstudybecauseofunavailabilityofdata,asmostofthefirmsdonotdisclosefullinformationintheirfinancialstatements.Finally,sincegoodeconomicconditionstendtobereflectedinafirm’sprofitability(Lamberson,1995),thisphenomenonhasbeencontrolledfortheevolutionoftheeconomiccycleusingtheGDPGRvariable,whichmeasurestherealannualGDPgrowthinPakistanforeachofthestudyyearfrom1998to2005.
StatisticalAnalysis
Theimpactofaggressiveandconservativeworkingcapitalpoliciesontheprofitabilityofthefirmshasbeenevaluatedbyapplyingthepaneldataregressionanalysis.Theperformancevariables(ROAandTobin’sq)aswellastheTCA/TAandTCL/TAalongwiththecontrolvariableswereregressedusingtheSPSSsoftware.Thefollowingregressionequationsareruntoestimatetheimpactofworkingcapitalpoliciesontheprofitabilitymeasures.
where,
TCA/TA=Totalcurrentassetstototalassetsratio
TCL/TAi=Totalcurrentliabilitiestototalassetsratio
ROAi=Returnonassets
Tobin’sqi=Valueofq
SIZEi=Naturallogoffirmsize
GROWTHi=Growthofsales
LVRGi=Financialleverageoffirms
GDPGRi=RealAnnualGDPgrowthrateofPakistan
α=Intercept;and
ε=Errortermofthemodel
SampleandData
Thesampleofthestudyconsistsofallnon-financialfirmslistedontheKarachiStockExchange(KSE).KSEhasdividedthenon-financialfirmsintovariousindustrialsectorsbasedontheirnatureofbusiness.Inordertobeincludedinthesample,afirmmustbeinbusinessforthewholestudyperiod.Also,firmsshouldneitherhavebeendelistedbytheKSEnormergedwithanyotherfirmduringthewholewindowperiod.Newincumbentsinthemarketduringthestudyperiodhavealsonotbeenincludedinthesample.Furthermore,firmsmusthavecompletedataforthe
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- 关 键 词:
- 激进 营运 资本 管理 政策 企业 盈利 能力 影响 外文 文献 翻译