The Moderating Effect of Working Capital Management on the Relationship between Working Capital Determinants and Firm Performance

Mazlan, Ahmad Rizal; Leng, Choong Yuen

doi:10.52962/ipjaf.2018.2.1.39

Cited by 13Working Capital and Financial PerformanceSupply Chain and Inventory ManagementFinancial Analysis and Corporate Governance

The Moderating Effect of Working Capital Management on the Relationship between Working Capital Determinants and Firm Performance

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Mazlan, Ahmad Rizal, Leng, Choong Yuen·2018·Indian-Pacific Journal of Accounting and Finance

DOI 10.52962/ipjaf.2018.2.1.39

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Abstract

This research examines working capital management moderating role on the relationship between the key determinants of working capital and firm performance among 282 public-listed manufacturing firms in Malaysia for the period of 2010 to 2014. In this study, working capital management components are categorized into working capital requirement and net liquid balance. The evidence suggests that the relationship between critical determinants of working capital and firm performance is moderated by both working capital requirement and net liquid balance. Further, the results show that the research framework does form a contemporary working capital management model.

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External factors such as governance policy, macroeconomic conditions, and microeconomic conditions influence the link between WCM and profitability.
“The external factors that can affect the link between WCM and profitability are represented by the moderating variables in this framework (Bibi and Amjad 2017; Muneer et al. 2017 ; Mazlan and Leng 2018; Soukhakian and Khodakarami 2019; Hussain et al. 2021; Yang and Liu 2023 ).”
From Working capital management impact on Zimbabwe’s listed consumer services firms’ profitability and the influence of external factors via governance policy (2025) · cites this paper as Mazlan and Leng 2018

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Authors: Mazlan, A. R., & Leng, C. Y.
Affiliations: Universiti Utara Malaysia (MY)
ORCID: Mazlan, Ahmad Rizal
Venue: Indian-Pacific Journal of Accounting and Finance
Publisher: OMJP Alpha Publishing
Published: 2018-01-01
Volume: 2
Issue: 1
Pages: 38-48
ISSN: 2590-406X (ISSN-L)
2600-9161
DOI: 10.52962/ipjaf.2018.2.1.39
OpenAlex: W2894011706
Cited by: 13
References: 63
Citations by year: 2025: 1 · 2024: 2 · 2023: 2 · 2022: 2 · 2021: 1 · 2020: 2 · 2019: 2 · 2018: 1
FWCI: 4.41
Type: journal article
Language: en
Open access: diamond
doi.org
Locations: Indian-Pacific Journal of Accounting and Finance (publishedVersion)
Universiti Utara Malaysia Institutional Repository (Universiti Utara Malaysia) (acceptedVersion)
Topics: Social Sciences › Business, Management and Accounting › Accounting › Working Capital and Financial Performance
Social Sciences › Business, Management and Accounting › Management Information Systems › Supply Chain and Inventory Management
Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
Keywords: working capital management, moderating effect, firm performance, working capital requirements, manufacturing companies, listed companies, Malaysia

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The Moderating Effect of Working Capital Management on the Relationship between Working Capital Determinants and Firm Performance

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