Year: 2025
Type: article
Abstract: Effective working capital management (WCM) is vital for the financial success of firms. This study examines the impact of WCM on the financial performance of publicly listed companies in Vietnam's construction materials industry from 2010 to 2023. Using regression analysis techniques such as OLS, FEM, and REM, the research reveals a significant positive correlation between financial performance and the quick ratio, indicating the importance of liquidity management. Conversely, a negative relationship is found between financial performance and accounts receivable, highlighting the need for efficient credit management. Inventory management shows no significant correlation with financial outcomes. The findings suggest that construction materials firms should prioritize improving accounts receivable management and maintaining adequate shortterm assets to meet current liabilities, thereby enhancing financial stability and performance.
Author: Nguyen Ngoc Khanh Linh
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4409405661