Corporate Governance and Working Capital Management — Inclusive Approach for Measuring the Firm Performance

IF 0.3 Q4 BUSINESS, FINANCE

Review of Pacific Basin Financial Markets and Policies Pub Date : 2021-06-21 DOI:10.1142/s0219091521500156

U. Kayani, Tracy-Anne De Silva, C. Gan

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引用次数: 4

Abstract

The least effective working capital management and poor corporate governance resulted in the 2008 global financial crisis besides various other factors as highlighted by the prior studies. So far, the existing literature reveals that WCM and CG affect firm performance (FP) on an individual basis. However, the collective effect of working capital management and corporate governance on firm performance has been paid the least attention. This study investigates the collective effect of working capital management and corporate governance on firm performance for Australia and Hong Kong markets, being the top two markets in the Pacific region. For this purpose, a system generalized method of moments based on two steps is applied to address the endogeneity issue. The results establish that working capital management and corporate governance affect firm performance on an individual basis and then these individual effect results compliment the collective effect results. The limitation of the study is that it did not consider two stages of Least Squares Regression due to difficulty in the identification of instrumental variables for both explanatory variables. As a policy implication, firm manager may take the benefit of the findings of this study while devising financial policies to enhance firm performance. Future investors may use the findings of this study to make an informed decision on future investment in both markets.

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公司治理和营运资金管理——衡量公司绩效的包容性方法

最不有效的营运资金管理和糟糕的公司治理是导致2008年全球金融危机的原因，以及之前的研究强调的各种其他因素。到目前为止，已有文献表明，WCM和CG在个体基础上影响企业绩效(FP)。然而，营运资金管理和公司治理对公司绩效的集体效应却得到了最少的关注。本研究调查了营运资金管理和公司治理对澳大利亚和香港市场公司绩效的集体影响，这两个市场是太平洋地区排名前两位的市场。为此，采用基于两步的系统广义矩量法来解决内生性问题。研究结果表明，营运资金管理和公司治理在个体基础上影响企业绩效，这些个体效应结果补充了集体效应结果。该研究的局限性在于，由于难以识别两个解释变量的工具变量，它没有考虑最小二乘回归的两个阶段。作为政策暗示，企业管理者可以在制定财务政策以提高企业绩效的同时，从本研究的发现中获益。未来的投资者可以利用本研究的结果，对未来在这两个市场的投资做出明智的决定。

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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来源期刊

Review of Pacific Basin Financial Markets and Policies BUSINESS, FINANCE-

CiteScore

1.30

自引率

11.10%

发文量

期刊介绍： This journal concentrates on global interdisciplinary research in finance, economics and accounting. The major topics include: 1. Business, economic and financial relations among the Pacific rim countries. 2. Financial markets and industries. 3. Options and futures markets of the United States and other Pacific rim countries. 4. International accounting issues related to U.S. companies investing in Pacific rim countries. 5. The issue of and strategy for developing Tokyo, Taipei, Shanghai, Sydney, Seoul, Hong Kong, Singapore, Kuala Lumpur, Bangkok, Jakarta, and Manila as international or regional financial centers. 6. Global monetary and foreign exchange policy, and 7. Other high quality interdisciplinary research in global accounting, business, economics and finance.