Impact of account receivable management on the profitability of Shari'ah and non-Shari'ah compliant firms in the Malaysian market
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Working capital is important for any firm and its administration is acknowledged as an essential of corporate administration. The main objective of working capital management is to choose the appropriate levels of the working capital components in order to ensure that the firm is able to meet its operating expenses and mitigate risks of default on payment of short-term obligations. In addition, working capital management is important for a firm’s survival because of its effects on a firm’s profitability and risk, and consequently its value (Gimeno, Folta et al. 1997) (Gunay and Kesimli 2011) and (Deloof 2003). Failure to manage working capital in prudent manner may lead to liquidity crisis and reduction in profitability, affecting the ability of firm to continue its operations.
Working capital management , Profitability , Shariah , Non shariah , Malaysia
Albdwy, F. F., Mohd Rasid, M. E. S., & Salman, S. (2015). Impact of account receivable management on the profitability of Shariah and non-Shariah compliant firms in the Malaysian market. Research Bulletin, 6. Retrieved from http://www.inceif.org/research-bulletin/impact-account-receivable-management-profitability-shariah-non-shariah-compliant-firms-malaysian-market/