The model is found to be consistent with the empirical data; the probability level is 0.085, χ 2/df is 2.96, CFI is 0.951, GFI is 0.979, IFI is 0.957, and RMR is 0.004. The result reveals a statistically significant positive relationship between working capital investment policy and profitability. In addition, working capital investment policy affects market value through profitability as a mediator variable. However, there are significant negative impacts of working capital financing policy on profitability and market value. Overall, it can be implied that companies which adopt conservative working capital investment policy and conservative working capital financing policy can increase their profitability and market value.
Pestonji, C. and Wichitsathian, S. (2019), "The Impacts of Working Capital Policy on Firms’ Performances: An Empirical Study on Thai Listed Companies in Production Sector", Asia-Pacific Contemporary Finance and Development (International Symposia in Economic Theory and Econometrics, Vol. 26), Emerald Publishing Limited, pp. 39-51. https://doi.org/10.1108/S1571-038620190000026003Download as .RIS
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