Working capital management is an important aspect of financial management. Since working capital significantly affects profitability and healthiness of businesses, prudent management of working capital is necessary for the success of... more
Working capital management is an important aspect of financial management. Since working capital significantly affects profitability and healthiness of businesses, prudent management of working capital is necessary for the success of firms. The researcher selected the title because no study is conducted on the impact of working capital management on the profitability of manufacturing firms particularly in case of sole proprietorship manufacturing firms in Adama City. For this purpose, the researcher collected quantitative data from financial statements covering a period of 2007-2012 for 10 sole proprietorship manufacturing firms in Adama city that have been selected by purposive sampling method. The research design was explanatory research and profitability was measured in terms of net operating profit (NOP). The study used descriptive statistics, and balanced fixed effect panel regression to analyze the data. The final findings of the study showed that average payment period has significant positive relationship with profitability while sales growth and size of the firm influence significantly in opposite direction on firms profitability. The study concludes that the firms are needed to improve their collection and payment policy. The firms can also improve their profitability by identifying and concentrating on target markets rather than simply focusing on increasing sales. Moreover, efficient Management and financing of components of working capital can increase the operating profitability of sole proprietorship manufacturing firms.
Modeling of causal relationships between foreign direct investment (FDI), export and economic growth for Bangladesh is the main purpose of this study and in this context time series data of these variables are taken over the period of... more
Modeling of causal relationships between foreign direct investment (FDI), export and economic growth for Bangladesh is the main purpose of this study and in this context time series data of these variables are taken over the period of 1975 to 2016 from World Development Indicator 2018. Time series analysis like unit root test, Johansen cointegration test, vector error correction model (VECM) and Granger causality test based on VECM have been employed for empirical analysis in this study. Empirical results reveal that a unidirectional causality running from export to economic growth in the context of Bangladesh but no causal relationship exists between FDI and economic growth, and export and FDI.
— the aim of this study is to investigate the impact of urbanization and energy consumption on CO2 emissions under the theoretical framework of Environmental Kuznets Curve (EKC) hypothesis. The EKC hypothesis for CO 2 emissions reveal... more
— the aim of this study is to investigate the impact of urbanization and energy consumption on CO2 emissions under the theoretical framework of Environmental Kuznets Curve (EKC) hypothesis. The EKC hypothesis for CO 2 emissions reveal that at the initial path of economic development CO 2 emissions increase with the level of development but start to decline after reaching a maximum point with higher level of economic development. Augmented Dickey-Fuller unit root tests are performed to check the order of intrigation of the variables. ARDL bounds test approach has been employed for empirical works. Empirical results confirm that our variables are cointegrated, and the short-run deviations from the long-run equilibrium are corrected by 77.19% towards long-run equilibrium path each year. Empirical results confirm that EKC hypothesis is valid for both short-run and long-run in Bangladesh. Moreover urbanization and energy consumption have statistical significant positive impact on CO 2 emissions, while impact of Economic openness and FDI is found statistically insignificant. To conclude, we can say that economic growth need not to be controlled to reduce CO2 emissions, instead, we can think about controlling urbanization and energy use to reduce CO2 emissions.
