Empirical Analysis on the Impact of Working Capital Management on EPS: A Panel Observation on the Cement Companies in Bangladesh

  • Saptarshi Dhar Institute of Business Administration, Jahangirnagar University, Savar, Dhaka, Bangladesh
  • Tasnima Aziza
Keywords: Working Capital Management,, EPS, Cash Conversion Cycle, Panel data, Cement Industry,

Abstract

Working Capital Management which includes managing of short-term assets and liabilities has a significant impact on firm’s performance. The purpose of this study is to investigate the impact of working capital management on earnings per share (EPS) of the cement companies in Bangladesh. The authors used the secondary data collected from annual reports of the Dhaka Stock Exchange (DSE) listed cement companies over the period of 2009-2015. The study used cash conversion cycle as a proxy for Working Capital Management and used panel data regression technique. The empirical evidenceshows that there is an insignificant negative impact of cash conversion cycle on earnings per share of the cement companies. Size (natural log of assets) and leverage (TD/TA) of the sample firms during the period also have an insignificant negative impact on EPS.

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Published
2019-04-15
How to Cite
[1]
Saptarshi Dhar and Tasnima Aziza, “Empirical Analysis on the Impact of Working Capital Management on EPS: A Panel Observation on the Cement Companies in Bangladesh”, pij, vol. 1, no. 2, pp. 07-14, Apr. 2019.
Section
Articles