THE MODERATING IMPACT OF ECONOMIC POLICY UNCERTAINTY ON THE RELATIONSHIP BETWEEN INVESTMENT IN WORKING CAPITAL AND PROFITABILITY

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

THE MODERATING IMPACT OF ECONOMIC POLICY UNCERTAINTY ON THE RELATIONSHIP BETWEEN INVESTMENT IN WORKING CAPITAL AND PROFITABILITY

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

THE MODERATING IMPACT OF ECONOMIC POLICY UNCERTAINTY ON THE RELATIONSHIP BETWEEN INVESTMENT IN WORKING CAPITAL AND PROFITABILITY

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2021

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

CONTEMPORARY ISSUES IN BUSINESS, MANAGEMENT AND ECONOMICS ENGINEERING 2021

ISBN

978-609-476-260-4

ISSN

—

e-ISSN

2538-8711

Počet stran výsledku

10

Strana od-do

1-10

Název nakladatele

Lithuania Vilnius Gediminas Technical University

Místo vydání

Vilnius

Místo konání akce

Vilnius

Datum konání akce

13. 5. 2021

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

—