Examining the impact of working capital management and financial reporting quality on financial performance : An empirical study /
Hadeer Adel Abdelhamid
Examining the impact of working capital management and financial reporting quality on financial performance : An empirical study / دراسة تأثير إدارة رأس المال العامل وجودة التقارير المالية على الأداء المالى : دراسة تطبيقية Hadeer Adel Abdelhamid ; Supervised Hala Abdelnaby Abdelfattah , Kholoud Abdelkareem Mahmoud - Cairo : Hadeer Adel Abdelhamid , 2020 - 148 Leaves ; 30cm
Thesis (M.Sc.) - Cairo University - Faculty of Commerce - Department of Accounting
The objective of this research is to examine the impact of working Capital Management (WCM) and Financial Reporting Quality (FRQ) on firms Financial Performance (FP). In this research, a sample of 61 Egyptian firms listed in the Egyptian stock Exchange is used for a period of five years from 2014 to 2018. The Panel Least Squares (PLS) and Estimated Generalized Least Square (EGLS) Regression analysis are employed to test the research hypotheses. Cash Conversion Cycle (CCC), Average Days of collecting Receivables (ADR), Average Days of holding Inventory (ADI) and Average Days of payment of Payables (ADP) are used to measure WCM, The modified Jones model (1995) is used to measure FRQ, and Return On Assets (ROA), Return On Equity (ROE) and Earnings Per Share (EPS) are used to measure firms FP. The results revealed that there is a significant negative impact of CCC on firms FP measured by ROA, ROE and EPS. Moreover, it is found that ADR and ADI have a significant negative impact on ROA. Also, it is found that ADI has a significant negative impact on ROE, while ADP has a significant positive impact on ROE. Additionally, there is a significant negative impact of ADR on EPS. Therefore, the efficient management of working capital can be achieved through shortening ADR and ADI and lengthening ADP as possible which in turn will be reflected positively on overall firms FP. Furthermore, the results indicated that FRQ has insignificant impact on ROA. Also, it is found that FRQ has a significant positive impact on ROE, while it has a significant negative impact on EPS. This implies that the lower the FRQ, the lower the ROE and the higher the EPS. Finally, the results show that the involvement of Earnings Management (EM) practices through deceasing FRQ, strengthen the relationship between WCM and ROA.Thus, managers use EM practices in the process of WCM to improve firms FP measured by ROA
Earnings Management Financial Reporting Quality Working Capital Management
Examining the impact of working capital management and financial reporting quality on financial performance : An empirical study / دراسة تأثير إدارة رأس المال العامل وجودة التقارير المالية على الأداء المالى : دراسة تطبيقية Hadeer Adel Abdelhamid ; Supervised Hala Abdelnaby Abdelfattah , Kholoud Abdelkareem Mahmoud - Cairo : Hadeer Adel Abdelhamid , 2020 - 148 Leaves ; 30cm
Thesis (M.Sc.) - Cairo University - Faculty of Commerce - Department of Accounting
The objective of this research is to examine the impact of working Capital Management (WCM) and Financial Reporting Quality (FRQ) on firms Financial Performance (FP). In this research, a sample of 61 Egyptian firms listed in the Egyptian stock Exchange is used for a period of five years from 2014 to 2018. The Panel Least Squares (PLS) and Estimated Generalized Least Square (EGLS) Regression analysis are employed to test the research hypotheses. Cash Conversion Cycle (CCC), Average Days of collecting Receivables (ADR), Average Days of holding Inventory (ADI) and Average Days of payment of Payables (ADP) are used to measure WCM, The modified Jones model (1995) is used to measure FRQ, and Return On Assets (ROA), Return On Equity (ROE) and Earnings Per Share (EPS) are used to measure firms FP. The results revealed that there is a significant negative impact of CCC on firms FP measured by ROA, ROE and EPS. Moreover, it is found that ADR and ADI have a significant negative impact on ROA. Also, it is found that ADI has a significant negative impact on ROE, while ADP has a significant positive impact on ROE. Additionally, there is a significant negative impact of ADR on EPS. Therefore, the efficient management of working capital can be achieved through shortening ADR and ADI and lengthening ADP as possible which in turn will be reflected positively on overall firms FP. Furthermore, the results indicated that FRQ has insignificant impact on ROA. Also, it is found that FRQ has a significant positive impact on ROE, while it has a significant negative impact on EPS. This implies that the lower the FRQ, the lower the ROE and the higher the EPS. Finally, the results show that the involvement of Earnings Management (EM) practices through deceasing FRQ, strengthen the relationship between WCM and ROA.Thus, managers use EM practices in the process of WCM to improve firms FP measured by ROA
Earnings Management Financial Reporting Quality Working Capital Management