Journal of Navigation and Port Research (한국항해항만학회지)

Korean Institute of Navigation and Port Research (한국항해항만학회)
권호 표지
DOI QR코드

DOI QR Code

The Relationship between Working Capital Management and Profitability : evidence from Korean Shipping Industry

우리나라 해운기업의 운전자본관리와 수익성과의 관계에 관한 실증연구

  • Received : 2015.01.28
  • Accepted : 2015.03.20
  • Published : 2015.06.30
Download PDF
⟨ Previous Next ⟩

Abstract

Many of previous studies suggested that working capital management is an important component of firm's financial decision and efficient working capital management affects firms' profitability and it's value. Recently, Korean shipping firms have been suffering from financial distress by recession of shipping economy. In this point of view, this study tries to investigate the relationship between working capital management and shipping firm's profitability, using panel data on 46 Korean shipping firms for the period of 2004-2013. As result of panel regression, it proved that average payment period, inventory turnover, cash conversion cycle and operating cycle are significantly associated with firms profitabilities such as profit margin ratio and operating profit ratio, and the manager of shipping firm can increase firms profitability by more efficient working capital management. There are strong positive relationships between average payment period and operating cycle and firm's profitability. These results suggest that managers can create firm's value by increasing average payment period and operating cycle. Otherwise inventory turnover and cash conversion cycle have negative relationships with firm's profitability. It means that managers can increase firm's profitability by reducing these variables.

기업의 운전자본관리는 단기재무전략관리 차원에서 접근이 가능하며, 이는 기업의 유동성 및 수익성 등에 영향관계가 있음이 실증되고 있다. 따라서 효율적인 운전자본관리는 기업의 수익성을 증대시킬 수 있을 뿐만 아니라, 유동성 또한 개선시킬 수 있게 된다. 해운기업의 경우 글로벌금융위기와 맞물려 수익성과 유동성에 많은 어려움을 겪었음에도 불구, 운전자본관리와 수익성에 대한 연구는 전무한 상태이다. 이에 본 연구에서는 2004년 이후 46개 해운기업을 대상으로 운전자본관리와 수익성과의 관계를 규명함으로써 단기재무전략 수립에 유용한 정보를 제공하고자 하였다. 연구의 결과 기존연구들과 같이 매입채무기간, 재고기간, 현금주기, 영업주기가 해운기업의 수익성 즉, 매출액 총이익률과 매출액영업이익률을 개선할 수 있는 중요한 요인인 것으로 실증되었다. 특히 매입채무신용기간과 영업주기의 증가는 수익성의 증가를 가져오는 것으로 분석된 반면, 재고기간과 현금주기는 부(-)의 관계를 보여 이들이 줄어들 경우 수익성이 증가하는 것으로 나타났다. 매출채권기간은 일부 모형에서 유의하였으나, 기존 연구들과는 달리 해운기업의 경우 수익성과의 관계를 설명하기에는 한계가 있는 것으로 나타났다.

Keywords

References

  1. Deloof, M.(2003), "Does Working Capital Management Affect Profitability of Belgian Firms?", Journal of Business and Accounting, Vol. 30, No. 3-4, pp. 573-587. https://doi.org/10.1111/1468-5957.00008
  2. Gill, A. Biger, N. and Mathur, N.(2010), "The Relationship Between Working Capital Management and Profitability : Evidence from The United States", Business and Economics Journal, Vol. 2010, pp. 1-9.
  3. Iqbal, A. and Zhuquan, W.(2015), "Working Capital Management and Profitability Evidence from Firms Listed on Karachi Stock Exchange", International Journal of Business and Management, Vol. 10, No. 2, pp. 231-235.
  4. Kim, G. W.(1995), "A Literature Survey on Working Capital Management", Korean Corporation Management Association, Vol. 2, pp. 99-120.
  5. Kim, J. H., Chun, H. S. and Oh, W. S.(2007), "A Study on Working Capital Management in Korean Small Firms", Management Accounting Association of Korea, Vol. 7, No. 2, pp. 23-45.
  6. Lazaridis, I. and Tryfonidis, D.(2006), "The Relationship between Working Capital Management and Profitability of Listed Companies in the Athens Stock Exchange", Journal of financial Management and Analysis, Vol. 19, No. 1, pp. 1-12.
  7. Lee, S. Y.(2013), "Empirical Study on the Determinants of Debt Maturity Structure in the Korean Shipping Industry", Journal of Korean Navigation and Port Research, Vol. 37, No. 2, pp. 181-186. https://doi.org/10.5394/KINPR.2013.37.2.181
  8. Lee, S. Y., Kim, H. D. and Ahn, K. Y.(2013), "A Study on the Relevance between Debt-ratio Characteristics and Investment Activity in the Korean Shipping Firms", Journal of Korea Port Economics Association, Vol. 29, No. 2, pp. 19-38.
  9. Makori, D. M. and Jagongo, A.(2013), "Working Capital Management and Firm Profitability : Empirical Evidence from Manufacturing and Construction Firms Listed on Nairobi Securities Exchanges, kenya", International Journal of Accounting and Taxation, Vol. 1, No. 1, pp. 1-14.
  10. Mansoori, E. and Muhammad, J.(2012), "The Effect of Working Capital Management on Firm's Profitability : Evidence from Singapore", Interdisciplinary Journal of Contemporary Research in Business, Vol. 4, No. 5, pp. 472-486.
  11. Napompech, K.(2012), "Effects of Working Capital Management on the Profitability of Thai Listed Firms", International Journal of Trade, Economics and Finance, Vol. 3, No. 3, pp. 227-232.
  12. Pai, H. S.(2015), "An Empirical Study on the Estimation of Adequate Debt ration in Korean Shipping Industry: Focused on Water Transport", Journal of Korean Navigation and Port Research, Vol. 39, No. 1, pp. 69-75. https://doi.org/10.5394/KINPR.2015.39.1.69
  13. Raheman, A. and Nasr, M.(2007), "Working Capital Management and Profitability - Case of Pakistani Firms", International Review of Business Research Papers, Vol. 3, No. 1, pp. 279-300.
  14. Rahman, M. M.(2011), "Working Capital Management and Profitability : A Study on Textiles Industry", ASA University Review, Vol. 5, No. 1, pp. 115-132.
  15. Sartoris, W. L. and Hill, N. C.(1983), "A Generalized Cash Flow Approach to Short-Term Financial Decisions", The Journal of Finance, Vol. 38, No. 2, pp. 349-360. https://doi.org/10.1111/j.1540-6261.1983.tb02240.x
  16. Sen, M. and Oruc, E.(2009), "Relationship between Efficiency Level of Working Capital Management and Return on Total Asset in Ise", International Journal of Business and Management, Vol. 4, No. 10, pp. 109-114.
  17. Shin, M. S. and Kim, S. E.(2008), "The Relations between Working Capital Management and Profitability of Small and Medium Firms", The Korean Small Business Review, Vol. 30, No. 4, pp. 17-33.
  18. Shin, M. S., Kim, S. E. and Kim, B. S.(2009), "The Relations between Working Capital Management and Cash Liquidity of Small and Medium Firms", The Korean Journal of Financial Engineering, Vol. 8, No. 2, pp. 163-185.
  19. Shin, M. S. and Kim, S. E.(2008), "The Relations between Working Capital Management and Profitability of Small and Medium Firms", The Asia Pacific Journal of Small Business, Vol. 30, No. 4, pp. 17-33.
  20. Smith, K.(1980), "Profitability versus Liquidity Tradeoffs in Working Capital Management, in Readings on the Management of Working Capital", New York: St. Paul, West Publishing Company, pp. 549-562.

Cited by

  1. Cash conversion cycle and corporate performance: Global evidence 2018, https://doi.org/10.1016/j.iref.2017.12.014