| dc.description.abstract | Workingg capitall is considered like a blood vessel of any business. How it is managed as a result will influence firm’s profits and value. This thesis is conducted with the purpose of testing whether workingg capitall managementt has any iimpact on corporatee profitabilityy in the case of Vietnam. The investigation focuses on manufacturing sector particularly due to the fact that this sector is highly important for the economy of Vietnam. For this thesis, the proxies for workingg capitall managementt are Cashh Conversionn Cyclee (CCC), Numberr Off Dayss Accountsss Payables (AP), Numberr Off Dayss Accountsss Inventoryy (INV), Numberr Off Dayss Accountsss Receivables (AR). Regards the dependent variable, Corporate Profitability is measured by Return On Assets. I also ultilize four control variables in order to see their effects on corporate profitabiliy : Sales Growth (GROWTH), Debtt Ratioo (DEBT), Firmm Sizee (SIZE), Financiall Assetss To Totall Assetss Ratio (FATA). The panel data is achieved by collecting information from 53 companies in manufacturing sector that are listed on HOSE. The research pperiod is ranged from 2008-2018. By conducting and analyzing using the Fixed Effect Model (FEM), I found a statistically-significantly positive relation between Return On Assetss and Numberr Off Dayss Accountsss Payables. This result indicates that by prolonging the period needed to pay short-term liabilities, companies are expected to gain higher profit from such action. The findings also show that the coefficients of AP, INV and CCC are positively related with ROA. This implies the lengthening in these three variables will increase the profitability, but the coefficients are quite small which indicates the effect of improving AP, INV and CCC on the profitability is insignificant. The control variables that were reported to have positive relationships with ROA are Sales Growth, Firm Size and FATA. However, estimation of SIZE is not statiscally significant. Debt Ratio results in a negative relation with ROA. In summary, managers striving for increasing profit should consider expanding the Numberr Off Dayss Accountsss Payables and take Sales Growth, FATA, Debt into consideration. | en_US |
