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Working capital management and financial performance of Malaysian construction sector companies

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General Information Cached
Title
Working capital management and financial performance of Malaysian construction sector companies
Type
Article
Main Author
Aik, Nai-Chiek
Additional Authors
  • Tee, Peck-Ling
Subject
HB Economic Theory
Language Code
eng
Bibliographic Details
Place of Production
Tanjong Malim
Publisher
Fakulti Pengurusan dan Ekonomi
Year of publication
2019
Degree Type
Others
Corporate Name
Universiti Pendidikan Sultan Idris

Abstract

This study examines the effects of working capital management on financial performance of construction companies listed in Bursa Malaysia for the period of 2012 to 2016. The findings show that only a shortening collection period and a positive working capital are significant to improve financial performance of local construction firms. An effective working capital management however does not contribute significantly to operating cash flow and share price of construction firms in Malaysia. The findings of this study suggest the management of account receivable is the most critical factor to improve financial performance for the local construction firms.

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