Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States
This study evaluates the efficiency of U.S. firms’ working capital management (WCME) by employing the data envelopment analysis technique (DEA). This study uses regression analysis to examine the impact of WCME and environmental, social, and governance (ESGP) performance on U.S. firm value. This stu...
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| Format: | Article |
| Language: | English |
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Academic Research and Publishing UG
2022-09-01
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| Series: | Financial Markets, Institutions and Risks |
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| Online Access: | https://armgpublishing.com/wp-content/uploads/2022/10/FMIR_3_2022_3.pdf |
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| author | Ahmed Mohamed Habib |
| author_facet | Ahmed Mohamed Habib |
| author_sort | Ahmed Mohamed Habib |
| collection | DOAJ |
| description | This study evaluates the efficiency of U.S. firms’ working capital management (WCME) by employing the data envelopment analysis technique (DEA). This study uses regression analysis to examine the impact of WCME and environmental, social, and governance (ESGP) performance on U.S. firm value. This study uses a data sample consisting of 964 firm-year observations from a longitudinal panel collected from 2016 to 2019. Endogeneity issues and the employment of additional analyses for robustness were considered. The results indicated that most firms under investigation were relatively inadequate regarding WCME and required correctional efforts by decision-makers to accomplish most reasonable efficiency, directly related to enhancing firm sales and net income. Additionally, the results reveal significant and positive influences of WCME and ESGP on firm value. The implications of this study would push decision-makers to employ the most reasonable procedures and strategies to improve the activities of a firm's WCM and ESG to boost its value and excel in the business environment. |
| format | Article |
| id | doaj-art-110fda0b2c6c4da3803188aeca6654da |
| institution | DOAJ |
| issn | 2521-1250 2521-1242 |
| language | English |
| publishDate | 2022-09-01 |
| publisher | Academic Research and Publishing UG |
| record_format | Article |
| series | Financial Markets, Institutions and Risks |
| spelling | doaj-art-110fda0b2c6c4da3803188aeca6654da2025-08-20T03:06:32ZengAcademic Research and Publishing UGFinancial Markets, Institutions and Risks2521-12502521-12422022-09-0163182510.61093/fmir.6(3).18-25.2022Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United StatesAhmed Mohamed Habib0https://orcid.org/0000-0003-1728-6028Independent Accounting and Finance Researcher, Zagazig, EgyptThis study evaluates the efficiency of U.S. firms’ working capital management (WCME) by employing the data envelopment analysis technique (DEA). This study uses regression analysis to examine the impact of WCME and environmental, social, and governance (ESGP) performance on U.S. firm value. This study uses a data sample consisting of 964 firm-year observations from a longitudinal panel collected from 2016 to 2019. Endogeneity issues and the employment of additional analyses for robustness were considered. The results indicated that most firms under investigation were relatively inadequate regarding WCME and required correctional efforts by decision-makers to accomplish most reasonable efficiency, directly related to enhancing firm sales and net income. Additionally, the results reveal significant and positive influences of WCME and ESGP on firm value. The implications of this study would push decision-makers to employ the most reasonable procedures and strategies to improve the activities of a firm's WCM and ESG to boost its value and excel in the business environment.https://armgpublishing.com/wp-content/uploads/2022/10/FMIR_3_2022_3.pdfdata envelopment analysisefficiencyenvironmentalesggovernanceperformancesocialwcmunited statesworking capital management |
| spellingShingle | Ahmed Mohamed Habib Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States Financial Markets, Institutions and Risks data envelopment analysis efficiency environmental esg governance performance social wcm united states working capital management |
| title | Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States |
| title_full | Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States |
| title_fullStr | Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States |
| title_full_unstemmed | Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States |
| title_short | Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States |
| title_sort | does the efficiency of working capital management and environmental social and governance performance affect a firm s value evidence from the united states |
| topic | data envelopment analysis efficiency environmental esg governance performance social wcm united states working capital management |
| url | https://armgpublishing.com/wp-content/uploads/2022/10/FMIR_3_2022_3.pdf |
| work_keys_str_mv | AT ahmedmohamedhabib doestheefficiencyofworkingcapitalmanagementandenvironmentalsocialandgovernanceperformanceaffectafirmsvalueevidencefromtheunitedstates |