IE interfaces (산업공학)

Korean Institute of Industrial Engineers (대한산업공학회)
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The Relationship between Supply Chain Management Performance Metrics and Corporate Value for Firms in Korea by Using Multiple Linear Regression Analysis : Focused on Inventory and Cash-To-Cash Cycle Time

다중회귀분석을 활용한 국내 기업의 공급체인관리 성과지표와 기업 시장가치와의 상관관계 분석 : 재고와 현금화주기를 중심으로

  • Jahng, Geum-Joo (Department of Business Administration, University of Seoul) ;
  • Yang, Jae-Hwan (Department of Business Administration, University of Seoul)
  • 장금주 (서울시립대학교 경영학부) ;
  • 양재환 (서울시립대학교 경영학부)
  • Received : 2011.08.24
  • Accepted : 2012.01.14
  • Published : 2012.06.01
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Abstract

This paper studies the relationship between SCM(Supply Chain Management) metrics and corporate value (Tobin's Q) for manufacturing and wholesale/retail firms in Korea. Specifically, the multiple regression analysis is used to investigate the relationships 1) between inventory level, inventory turns, and days of inventory and Tobin's Q and 2) between cash-to-cash (C2C) cycle time including its components such as days of inventory, days sales outstanding, and days payable outstanding and Tobin's Q. The results indicate that there exist statistically significant negative relationships between inventory levels and days of inventory (DOI) and Tobin's Q. Also, we found that there exist commonly known negative correlations between days of raw materials inventory and days of work in process (WIP) inventory and Tobin's Q. For the C2C cycle time, we found that there -exists a statistically significant negative relationship between the C2C cycle time and Tobin's Q. Also, we found that there exist commonly known correlations between the two components of C2C cycle time and Tobin's Q such as the negative for DOI and days sales outstanding. This study clearly shows the negative relationship in general between inventory levels and corporate value and between C2C time and corporate value, and this kind of result has not been found by previous studies in Korea.

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References

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