Working capital policies and value creation of listed non-financial firms in Ghana: a panel FMOLS analysis

Business and Economic Horizons Pub Date : 2018-08-14 DOI:10.15208/BEH.2018.51

S. Frimpong

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引用次数: 2

Abstract

The aim of the study was to determine effects aggressive/ conservative working capital policies have on the value creation. Data from 10 listed non-financial companies on the Ghana Stock Exchange spanning from 2004-2015 was used for this study. The study adopted quantitative research design applied to panel cointegration technique and panel fully modified ordinary least square methodology. The panel cointegration results indicated that there was a long-run equilibrium association between working capital variables and shareholders’ value creation. The panel FMOLS results indicated that aggressive current asset investment policies enhance market-to-book ratio in the long-run. On the other hand, conservative current asset financing policies enhance market-to-book ratio in the long-run. This study has two contributions. First, prior studies investigated the connection existing between components of working capital management and shareholder value creation without investigating the specific policies these firms are pursuing and their effect on the shareholders’ value creation. Second, this study employs a contemporary econometric methodology in analyzing the data.

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加纳非金融上市公司营运资金政策与价值创造:面板FMOLS分析

本研究的目的是确定激进/保守营运资金政策对价值创造的影响。本研究使用了2004-2015年在加纳证券交易所上市的10家非金融公司的数据。本研究采用定量研究设计，运用面板协整技术和面板全修正普通最小二乘方法。面板协整结果表明，营运资金变量与股东价值创造之间存在长期均衡关系。面板FMOLS结果表明，激进的流动资产投资政策在长期内提高了市净率。另一方面，保守的流动资产融资政策在长期内提高了市净率。这项研究有两个贡献。首先，先前的研究调查了营运资金管理组成部分与股东价值创造之间存在的联系，而没有调查这些公司所追求的具体政策及其对股东价值创造的影响。其次，本研究采用当代计量经济学方法分析数据。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Business and Economic Horizons ECONOMICS-

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