The peculiarities of working capital management at agroindustrial enterprises of Ukraine

  • Received March 26, 2018;
    Accepted May 21, 2018;
    Published June 6, 2018
  • Author(s)
    Ruslan Mann
    ORCID , Victor Martinovich , Oksana Yakusheva
  • DOI
    http://dx.doi.org/10.21511/ppm.16(2).2018.24
  • Article Info
    Volume 16 2018, Issue #2, pp. 260-268
  • TO CITE АНОТАЦІЯ
  • Cited by
    3 articles
  • 1160 Views
  • 176 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

Achieving the balance in the formation of working capital is a prerequisite for stable development of enterprises and improvement of the economic situation in Ukraine as a whole that is especially relevant during the period of socio-economic crisis. The study of working capital management peculiarities of agricultural enterprises deserves special attention, since their contribution to the national economy is significant.
The purpose of the article is to investigate methods of assessing the efficiency of formation of enterprises working capital and prospects for its application to characterize the current state of domestic agricultural enterprises activity. The object of the research is determining the actual model of working capital financing at Ukrainian agricultural enterprises.
In the article, the efficiency of formation and use of working capital in Ukrainian agricultural sector is analyzed. The actual model of working capital financing of enterprises in this sector is determined. It is typical for this sphere to adhere the aggressive policy of current assets formation, which increases the risk of loss of the solvency and financial stability. Optimization of sources of working capital financing at domestic agricultural enterprises will increase the volume of economic activity financing and improve the enterprises liquidity.

view full abstract hide full abstract
    • Figure 1. Dynamics of innovation and investment potential of agricultural producers in Ukraine in 2010–2017
    • Table 1. Dynamics of current assets of agricultural enterprises of Ukraine in 2015–2017, UAH mln
    • Table 2. Structure of current assets of agricultural enterprises in Ukraine
Related Articles

  • The effect of working capital management and credit management policy on Jordanian banks’ financial performance

    Abdulnafea AL-Zararee , Nashat Ali Almasria , Qasim Ahmad AlawaqlehORCID doi: http://dx.doi.org/10.21511/bbs.16(4).2021.19
    Banks and Bank Systems Volume 16, 2021          Issue #4         pp. 229-239 Views: 1022 Downloads: 486 TO CITE АНОТАЦІЯ

    This study investigated the impact of Working Capital Management (WCM) and Credit Management Policy (CMP) on the Financial Performance (FP) of Jordanian banks (JB). The study data were obtained from 16 Jordanian banks listed on the Amman Stock Exchange (ASE) between 2017 and 2020. The study used panel data to investigate the relationship between the two independent variables, WCM and CMP, and the dependent variable FP; 64 financial reports to Jordanian banks were analyzed to measure this relationship. To test hypotheses, multiple regression was used. The study found a statistically significant relationship between WCM and FP, and the independent variable was able to explain 34.1% of the changes that occur in the dependent variable. In addition, the outcome approved that there is a statistically significant relationship between CMP and FP. Furthermore, CMP explained about 41.8% of changes in the dependent variable. The findings of this study indicate support for the banks’ performance; a bank may need to lengthen client credit terms, prolong the cash transfer cycle, and require a more extended payment period when judging on WCM.

    Acknowledgment
    The publication of this research has been supported by the Deanship of Scientific Research and Graduate Studies at Philadelphia University – Jordan.

  • Does management of working capital enhance firm value? Empirical analysis of manufacturing enterprises in India

    Rupali Gupta , Sunita JatavORCID , Gagan Prakash doi: http://dx.doi.org/10.21511/imfi.20(3).2023.19
    Investment Management and Financial Innovations Volume 20, 2023         Issue #3         pp. 224-238 Views: 465 Downloads: 156 TO CITE АНОТАЦІЯ

    The long-term financial health of a corporation is assessed by its capacity to meet short-term financial commitments. Optimum working capital that maximizes enterprise value varies across companies. The purpose of this paper is to investigate whether Indian manufacturing enterprises’ firm values are influenced by working capital management efficiency. The data are taken from 2016 to 2022 (a seven-year period) for 223 top BSE-listed manufacturing companies. Firm value (explained variable) is proxied using Tobin’s Q, and the constituents of working capital, which include the net trade cycle, inventory period, debtors’ collection period, and creditor payment period, are taken as explanatory variables. The study also controls for any differences in firm characteristics and economic conditions by employing firm size, age, current ratio, net profit ratio, sale growth and GDP growth rate. Balanced-panel data analysis is conducted by employing a two-step generalized method of moment technique. Net trade cycle, inventory period and debtors’ collection period are found to have a strong and significant positive impact on Tobin’s Q. The findings however did not report any evidence of the significant relationship between creditor payment period and Tobin’s Q. Additionally, the outcomes also evidenced that firm value is positively impacted by company size, net profit ratio, sales growth and GDP, whereas negatively affected by firm age. This paper suggests that manufacturing firms may potentially enhance their firm value by prolonging the net trade cycle, period of inventory and lengthening the credit period to customers till the level of attainment of an optimum working capital.

Download Preview
Close
Problems and Perspectives in Management
Problems and Perspectives in Management