THE MODERATING IMPACT OF ECONOMIC POLICY UNCERTAINTY ON THE RELATIONSHIP BETWEEN INVESTMENT IN WORKING CAPITAL AND PROFITABILITY
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F21%3A63527418" target="_blank" >RIV/70883521:28120/21:63527418 - isvavai.cz</a>
Result on the web
<a href="http://cibmee.vgtu.lt/index.php/verslas/2021/paper/viewFile/598/255" target="_blank" >http://cibmee.vgtu.lt/index.php/verslas/2021/paper/viewFile/598/255</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.3846/cibmee.2021.598" target="_blank" >10.3846/cibmee.2021.598</a>
Alternative languages
Result language
angličtina
Original language name
THE MODERATING IMPACT OF ECONOMIC POLICY UNCERTAINTY ON THE RELATIONSHIP BETWEEN INVESTMENT IN WORKING CAPITAL AND PROFITABILITY
Original language description
Purpose – Investment in working capital and firm profitability with economic policy uncertainty moderating effects has paid less attention in the existing literature. Therefore, this study examines the moderating impact of economic policy uncertainty on the relationship between Investment in working capital and firm profitability. Research methodology – This study uses secondary data of 38 Pakistani chemical companies over the period of 2014-2019 using dynamic panel data methodology. Findings – The dynamic panel analysis indicates that economic policy uncertainty moderates the relationship of investment in working capital and firm profitability significantly and positively. Overall, the study findings indicate that working capital management investment significantly affect accounting base performance of Pakistani chemical and pharmaceutical companies. Research limitations – In this research, the researcher has collected data only from the non-financial sector. The financial industry can be used to carry the same study to get different results. Practical implications – This study will help practitioners while making an investment decision in working capital management for firms because the results of this study contribute significantly to the firm’s profitability. Originality/Value – This research contributes favourable to a country’s prospective investors at large and in the business’s internal environment to manage the short-term liquidity issues during economic policy fluctuations.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
—
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2021
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
CONTEMPORARY ISSUES IN BUSINESS, MANAGEMENT AND ECONOMICS ENGINEERING 2021
ISBN
978-609-476-260-4
ISSN
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e-ISSN
2538-8711
Number of pages
10
Pages from-to
1-10
Publisher name
Lithuania Vilnius Gediminas Technical University
Place of publication
Vilnius
Event location
Vilnius
Event date
May 13, 2021
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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