CASH CONVERSION CYCLE SENSITIVITY BY MODERATING ROLE OF EXCHANGE RATES VOLATILITY ON FIRM’S FINANCIAL PERFORMANCE

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F21%3A63530138" target="_blank" >RIV/70883521:28120/21:63530138 - isvavai.cz</a>

Výsledek na webu

<a href="https://journals.vgtu.lt/index.php/BTP/article/view/13147" target="_blank" >https://journals.vgtu.lt/index.php/BTP/article/view/13147</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3846/btp.2021.13147" target="_blank" >10.3846/btp.2021.13147</a>

Jazyk výsledku

angličtina

Název v původním jazyce

CASH CONVERSION CYCLE SENSITIVITY BY MODERATING ROLE OF EXCHANGE RATES VOLATILITY ON FIRM’S FINANCIAL PERFORMANCE

Popis výsledku v původním jazyce

The cycle of cash conversion relates to the time spread between the value of cash paid for purchases and the cash receipt from turnover. Using the State Bank of Pakistan data, this study introduces the direct and moderating role of the exchange rate, effective through the efficient execution of the cash conversion cycle between Pakistani 302 manufacturing companies from 1999–2015. Using the fixed effect as the static panel model and system GMM as a dynamic panel, it is observed that the exchange rate plays an authoritative moderating role between the cash conversion cycle and the financial performance. Results of the investigation have shown that in static panel analysis with the cash conversion period, the exchange rate has a positive and substantial moderating effect on return on assets and return on equity whereas that ER has a major negative impact on return on assets and return on equity using dynamic panel data analysis GMM. The issue of endogeneity in the static panel is addressed using the advanced approach of the standard error of the panel correction standard error method that changed the position of the significance of the moderator variable. Observers, therefore, intend to evaluate the fluctuations in the exchange rate as one of the variables of the financial output moderator in the context of current metrics such as asset’s returns, equity’s returns and gain more practical expression within their investigated results.

Název v anglickém jazyce

CASH CONVERSION CYCLE SENSITIVITY BY MODERATING ROLE OF EXCHANGE RATES VOLATILITY ON FIRM’S FINANCIAL PERFORMANCE

Popis výsledku anglicky

The cycle of cash conversion relates to the time spread between the value of cash paid for purchases and the cash receipt from turnover. Using the State Bank of Pakistan data, this study introduces the direct and moderating role of the exchange rate, effective through the efficient execution of the cash conversion cycle between Pakistani 302 manufacturing companies from 1999–2015. Using the fixed effect as the static panel model and system GMM as a dynamic panel, it is observed that the exchange rate plays an authoritative moderating role between the cash conversion cycle and the financial performance. Results of the investigation have shown that in static panel analysis with the cash conversion period, the exchange rate has a positive and substantial moderating effect on return on assets and return on equity whereas that ER has a major negative impact on return on assets and return on equity using dynamic panel data analysis GMM. The issue of endogeneity in the static panel is addressed using the advanced approach of the standard error of the panel correction standard error method that changed the position of the significance of the moderator variable. Observers, therefore, intend to evaluate the fluctuations in the exchange rate as one of the variables of the financial output moderator in the context of current metrics such as asset’s returns, equity’s returns and gain more practical expression within their investigated results.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Rok uplatnění

2021

Kód důvěrnosti údajů

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

Název periodika

Business: Theory and Practice

ISSN

1648-0627

e-ISSN

—

Svazek periodika

22

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

LT - Litevská republika

Počet stran výsledku

13

Strana od-do

277-289

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85114718287