Journal of Commerce and Accounting Research

Mihir Dash ¹, Sarita Kumari Singh ², Saqeeb U. Rahaman ², Sajana Nadigadda ², Surbhi Srivastava ², Ankur Agrawal ²

Affiliations
1 Management Science, Alliance University, School of Business, Karnataka, IN
2 Alliance University, School of Business, Karnataka, IN

Abstract

This study analyses the financial performance of Indian banks from three different points of view, viz. that of regulators, investors, and borrowers, using multi-criteria TOPSIS analysis. In particular, the financial performance of public sector banks is compared with that of private sector banks from these three points of view.
The results of study show that the three different points of view of banking performance are very consistent with each other. Further, the results of the study clearly indicate that, in the Indian context, private sector banks are performing significantly better than public sector banks, and all of the top-performing banks identified from the TOPSIS analysis are private sector banks. The better performance of private sector banks may be attributed to professional, efficient management, and better customer focus and service; while the worse performance of public sector banks may be partially attributed to lack of professional, efficient management and partially to political interference and constraints.

Keywords

Financial Performance of Indian Banks, Regulators, Investors, Borrowers, TOPSIS, Public Sector Banks, Private Sector Banks.

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Mihir Dash ¹

Affiliations
1 Management Science, School of Business, Alliance University, Bangalore, Karnataka, IN

Abstract

Working-capital management is an important decision in financial management, playing a key role in a firm’s financial performance. For construction companies, working capital is all the more important due to the long project cycles they face.

The present study examines the impact of working capital on profitability in the construction sector in Bangalore, India. The data for the study were collected from a sample of five major builders based in Bangalore, and pertains to a study period during 2006-11. The study contributes to the literature by using fixed-effects-panel-regression analysis rather than pooled regression, as the fixed-effects panel regression allows control for company-specific differences in profitability as well as for year-to-year differences in profitability for the industry as a whole.

The results of the study suggest that construction companies should focus on two working-capital variables to maximize their profitability, viz. average collection period and accounts payable, both of which were found to have significant positive impact on profitability.

Keywords

Working-Capital Management, Construction Industry, Project Cycle, Average Collection Period, Accounts Payable.

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Mihir Dash ¹

Affiliations
1 Management Science, School of Business, Alliance University, Karnataka, IN

Abstract

This study examines the firm-level determinants of working capital for sugar manufacturing companies in India. Working capital management is particularly important for sugar manufacturing companies, as inventory cycles in the sugar industry generally tend to be relatively long, as its raw material inputs are seasonal and thus require a longer period of storage. The sample for the study included 15 listed sugar manufacturing companies for the period 2008–18. The study uses fixed-effects panel regression models, with size (logarithm of total assets), leverage (debt-equity ratio), asset tangibility (fixed assets as a percentage of total assets), growth rate of sales and profitability (return on assets) as the independent variables, and the current ratio, inventory cycle, receivables cycle, payables cycle, cash conversion cycle, total assets turnover ratio, fixed assets turnover ratio, inventory turnover ratio, receivables turnover ratio and payables turnover ratio as the dependent variables. The key results of the study were significant positive size and leverage effects and a significant negative asset-tangibility effect on working capital in the Indian sugar industry.

Keywords

Determinants of Working Capital, Sugar Manufacturing Companies, Inventory Cycle, Receivables Cycle, Payables Cycle, Cash Conversion Cycle, Size, Leverage, Asset Tangibility, Growth Rate of Sales, Profitability.

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