Factors Affecting the Cash Cycle of Listed Companies in the Market for Alternative Investment (MAI) in Thailand
Keywords:
Cash Cycle, Market for Alternative Investment (MAI)Abstract
This research aims to study the factors affecting the cash conversion cycle of companies listed on the Market for Alternative Investment (MAI) in Thailand. The factors examined include accounts receivable turnover ratio, average collection period, inventory turnover ratio, average inventory holding period, accounts payable turnover ratio, and average payment period between the years 2022–2023. Data were collected from the summary reports of 203 publicly listed companies. The data were analyzed using statistical methods, including mean, standard deviation, correlation analysis, and multiple regression analysis. The results indicate that the average collection period and average inventory holding period have a positive impact on the cash conversion cycle. In contrast, the average payment period has a negative impact on the cash conversion cycle, with statistical significance at the 0.01 level. This study highlights the importance of inventory and accounts receivable management in enhancing business liquidity, and emphasizes the effectiveness of credit term strategies in maintaining financial stability.
References
ตลาดหลักทรัพย์แห่งประเทศไทย. (2567). สรุปข้อสนเทศบริษัทมหาชนจำกัด (Factsheet). www.set.or.th
ประคอง กรรณสูตร. (2538). สถิติเพื่อการวิจัยทางพฤติกรรมศาสตร์. (พิมพ์ครั้งที่ 2). สำนักพิมพ์แห่งจุฬาลงกรณ์มหาวิทยาลัย.
มนตรี พิริยะกุล. (2544). Panel data analysis. วารสารรามคำแหงสาขาวิทยาศาสตร์และเทคโนโลยี, 30(2), 41–54.
Bank of Thailand. (2021). Annual report 2021: Navigating through uncertainty. https://www.bot.or.th
Black, K. (2006). Business statistics for contemporary decision making. (4th ed.). John Wiley & Sons.
Brigham, E. F., & Houston, J. F. (2019). Fundamentals of financial management. (15th ed.). Cengage Learning.
Charumilind, C., Kali, R., & Wiwattanakantang, Y. (2006). The economic effects of the Asian crisis: Firm-level evidence from Thailand. Pacific-Basin Finance Journal. 14(2), 153-174. https://doi.org/10.1016/j.pacfin.2005.06.001.
Chenhall, R. H. (2003). Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 28(2-3), 127-168. https://doi.org/10.1016/S0361-3682(01)00027-7.
Chotkunakitti, N., & Srithaworn, C. (2024). The relationship between working capital management, sales growth, and profitability of listed companies in the Stock Exchange of Thailand.
Journal of Accounting Management and Innovation, 14(1), 88–103. https://so02.tci-thaijo.org/index.php/jam/article/view/268191
Damodaran, A. (2012). Investment valuation: Tools and techniques for determining the value of any asset (3rd ed.). Wiley.
Deloof, M. (2003). Does working capital management affect profitability of Belgian firms? Journal of Business Finance & Accounting, 30(3-4), 573-588. https://doi.org/10.1111/1468-5957.00008.
García-Teruel, P. J., & Martínez-Solano, P. (2007). Effects of working capital management on SME profitability. International Journal of Managerial Finance, 3(2), 164–177. https://doi.org/10.1108/17439130710738718.
Gibson, C. H. (2020). Financial reporting and analysis: Using financial accounting information. (14th ed.). Cengage Learning.
Gill, A., Biger, N., & Mathur, N. (2010). The relationship between working capital management and profitability: Evidence from the United States. Business and Economics Journal, 2010(1), 1-9.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics. 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X.
Napompech, K. (2012). Effects of working capital management on the profitability of Thai listed firms. International Journal of Trade, Economics and Finance, 3(3), 227–232. https://doi.org/10.7763/IJTEF.2012.V3.205
Nguyen, H. M., & Mohanlingam, S. (2018). The effects of working capital management on profitability: Evidence from listed companies in Thailand. Asian Journal of Business and Accounting, 11(3), 231–253.https://ejournal.um.edu.my/index.php/AJBA/article/view/12148
Raheman, A., & Nasr, M. (2007). Working capital management and profitability – Case of Pakistani firms. International Review of Business Research Papers, 3(1), 279-300.
Rattanacharuenchai, T., & Chaiwong, K. (2019). The impact of cash conversion cycle on financial performance: Evidence from Thai listed companies. UTCC Journal of Business Administration and Accounting, 41(1), 31–44. https://so06.tci-thaijo.org/index.php/utccjournalhs/article/view/193678
Richard, A. C., & Laughlin, J. R. (1980). Corporate liquidity: Management and measurement. Financial Management, 9(2), 64-70. https://doi.org/10.2307/3665053.
Richards, V. D., & Laughlin, E. J. (1980). A cash conversion cycle approach to liquidity analysis. Financial Management, 9(1), 32-38. https://doi.org/10.2307/3665283.
Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2021). Fundamentals of corporate finance. (13th ed.). McGraw-Hill Education.
Shin, H. H., & Soenen, L. (1998). Efficiency of working capital and corporate profitability. Financial Practice and Education, 8(2), 37-45.
Vishwanath, S., & Ghosh, M. (2020). Working capital management and firm performance: An empirical study of Indian SMEs. Journal of Small Business Management, 58(3), 529-546. https://doi.org/10.1111/jsbm.12416.
Wongthatsanekorn, W. (2010). Cash conversion cycle and corporate profitability: An empirical study of hospital industry in Thailand. In Proceedings of the World Congress on Engineering and Computer Science 2010 (Vol. 2, pp. 1179–1184). IAENG. https://www.iaeng.org/publication/WCECS2010/WCECS2010_pp1179-1184.pdf
