期刊名称：Journal of Asian Finance, Economics and Business
印刷版ISSN：2288-4637
电子版ISSN：2288-4645
出版年度：2016
卷号：3
期号：2
页码：13-20
DOI：10.13106/jafeb.2016.vol3.no2.13
语种：English
出版社：Korean Distribution Science Association
摘要：Firms can use working capital management which is one of the essential determinants to influence their profitability.The main theme of present study is to investigate the relationship between working capital management and profitability of Tobacco Industry of Pakistan.This study is based on secondary data collected from financial statements of selected companies of Tobacco Industry of Pakistan for the period of 2005-2014.For data analysis,both descriptive and inferential statistics were used.Correlation analysis is used to check the relationship between the variables,while multiple regression analysis is used to examine the effects of working capital management on profitability of firms.The result reveals that there is a strong negative relationship between variables of working capital management and profitability of Tobacco Industry of Pakistan.This means that as the cash conversion cycle increases,it will lead to declining of firm profitability and managers can create a positive value for shareholders by reducing the cash conversion cycle at optimal level.The study concludes that managers can create value for shareholders by managing the working capital well designed and implemented,and by keeping each components of it at optimal level.
关键词：Working Capital Management;Profitability;Tobacco Industry;Pakistan.
