Management
Syed Md. Khaled Rahman; Mohammad Mizenur Rahaman; Nilufar Yeasmin Lima
Abstract
The study sought to explore the effect of Social Capital (SC) on banks’ financial performance and whether this effect is mediated by competitive advantage (CA) or not. Secondary data were collected from banks’ nine years’ annual reports (2014-2022). By stratified sampling method, 20 ...
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The study sought to explore the effect of Social Capital (SC) on banks’ financial performance and whether this effect is mediated by competitive advantage (CA) or not. Secondary data were collected from banks’ nine years’ annual reports (2014-2022). By stratified sampling method, 20 commercial banks in Bangladesh were selected. Findings revealed that the influence of SC on ROA and NIAT is significant and CA mediates between them. For one unit increase in SC, ROA and NIAT will increase by 0.274 and 0.508 units respectively. However, there is no significant effect of SC on ROI. SC has a significant impact on CA also. One unit increase in SC results in a 0.822 unit increase in CA and vice versa. The findings of the study will have implications for policymakers like Bangladesh Bank, government, bankers, depositors, borrowers, and other stakeholders as enrichment of social capital is likely to improve banks’ financial performance through the attainment of CA.
Management
Syed Md. Khaled Rahman; Salman Ahmed
Abstract
Short term asset and liability management is significant in corporate finance literature. This paper investigated on the impacts of working capital management (WCM) on profitability of listed companies of cement and tannery industry in Bangladesh. The data of companies has been collected from Dhaka Stock ...
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Short term asset and liability management is significant in corporate finance literature. This paper investigated on the impacts of working capital management (WCM) on profitability of listed companies of cement and tannery industry in Bangladesh. The data of companies has been collected from Dhaka Stock Exchange over the period 2008-2017. Five firms were chosen from each industry by applying simple random sampling method. Study found that WCM has significant impact on profitability. Result revealed that if average payment period, and cash conversion cycle increase it leads to decrease in all four profitability ratios of cement industry’s firms. Cash conversion cycle has significant negative impact on ROE while current ratio (CR) has significant positive effect on NPM. In contrast, tannery industry impacted by days sales outstanding (DSO) negatively. More inventory turnover has reduced ROE & ROCE while stretching payables reduced ROA & NPM. DSO has significant negative and CR has significant positive impact on NPM of tannery industry’s firms. The managers can increase their companies’ profitability by reducing the days sales outstanding, days inventory turnover, cash conversion cycle and average payment period. The study has practical and policy implications for corporate managers, suppliers, customers, and competitors as enhanced profitability has direct and indirect effect on all stakeholders.
