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  • 标题:Role of working capital management in profitability considering the connection between accounting and finance
  • 本地全文:下载
  • 作者:Amer Morshed
  • 期刊名称:Asian Journal of Accounting Research
  • 印刷版ISSN:2443-4175
  • 出版年度:2020
  • 卷号:5
  • 期号:2
  • 页码:257-267
  • DOI:10.1108/AJAR-04-2020-0023
  • 摘要:Purpose The study aims to explain the relationship between accounting and finance through measuring the effect of rational working capital management on profitability. Design/methodology/approach Employing the methodology of semi-structured interviews with sixteen financial managers. Findings The findings pointed out the relationship between accounting and finance is complementary, since it supports the accountant by the critical skills and information, like project evaluation, managing the company funding resources and working capital management. These skills put the accountant up to the financial manager stage. The working capital investment and financing policies have the most significant impact on profitability. These policies related to risk and return theory; since the conservative policy will reduce both the risk and return and the aggressive one will have the opposite impact. Originality/value It recommends accountants to be in professional stage and increase the profitability of the company to grab both accounting and finance information and skills.
  • 其他摘要:Purpose

    The study aims to explain the relationship between accounting and finance through measuring the effect of rational working capital management on profitability.

    Design/methodology/approach

    Employing the methodology of semi-structured interviews with sixteen financial managers.

    Findings

    The findings pointed out the relationship between accounting and finance is complementary, since it supports the accountant by the critical skills and information, like project evaluation, managing the company funding resources and working capital management. These skills put the accountant up to the financial manager stage. The working capital investment and financing policies have the most significant impact on profitability. These policies related to risk and return theory; since the conservative policy will reduce both the risk and return and the aggressive one will have the opposite impact.

    Originality/value

    It recommends accountants to be in professional stage and increase the profitability of the company to grab both accounting and finance information and skills.

  • 关键词:Accounting; Finance; Working capital; Profitability
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