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Cited by 71Working Capital and Financial PerformanceSupply Chain and Inventory ManagementFinancial Analysis and Corporate Governance

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Role of working capital management in profitability considering the connection between accounting and finance

Open access
Morshed, Amer·2020·Asian Journal of Accounting Research
DOI 10.1108/ajar-04-2020-0023
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Abstract

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.

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Metadata

Authors
Morshed, A.
Affiliations
University of Sopron (HU)
Corresponding author
Morshed, Amer
ORCID
Morshed, Amer
Venue
Asian Journal of Accounting Research
Publisher
Emerald
Published
2020-08-21
Volume
5
Issue
2
Pages
257-267
ISSN
2443-4175 (ISSN-L)
DOI
10.1108/ajar-04-2020-0023
OpenAlex
W3080996900
Cited by
71
References
2
Citations by year
2026: 4 · 2025: 9 · 2024: 24 · 2023: 20 · 2022: 9 · 2021: 5
FWCI
14.73
Type
journal article
Language
en
Open access
Licence
Locations
  • Asian Journal of Accounting Research (publishedVersion, cc-by)
  • Üdvözöljük a Publicatio oldalán (University of West Hungary) (acceptedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Accounting › Working Capital and Financial Performance
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Supply Chain and Inventory Management
  • Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
Keywords
working capital management, profitability, risk-return tradeoff, financial management skills

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CoChat. (2026). Citation check: Role of working capital management in profitability considering the connection between accounting and finance. https://app.cochat.ai/papers/10.1108/ajar-04-2020-0023
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Morshed, A. (2020). Role of working capital management in profitability considering the connection between accounting and finance. Asian Journal of Accounting Research. https://doi.org/10.1108/ajar-04-2020-0023