激进的营运资本管理政策对企业盈利能力的影响外文翻译（可编辑）.doc

激进的营运资本管理政策对企业盈利能力的影响外文翻译 Impact of Aggressive Working Capital Management Policy on Firms’ Profitability Material Source: ////0. Author: Mian Sajid Nazir* and Talat Afza** Introduction The corporate finance literature has traditionally focused on the study of long-term financial decisions, particularly investments, capital structure, dividends or company valuation decisions. However, short-term assets and liabilities are important components of total assets and need to be carefully analyzed. Management of these short-term assets and liabilities warrants a careful investigation since the working capital management plays an important role in a firm’s profitability and risk as well as its value Smith, 1980. Efficient management of working capital is a fundamental part of the overall corporate strategy in creating the shareholders’ value. Firms try to keep an optimal level of working capital that imizes their value Deloof, 2003; Howorth and Westhead , 2003 and Afza and Nazir, 2007. In general, from the perspective of Chief Financial Officer CFO, working capital management is a simple and straightforward concept of ensuring the ability of the organization to fund the difference between the short-term assets and short-term liabilities Harris, 2005. However, a ‘Total’ approach is desired as it can cover all the company’s activities relating to vendor, customer and product Hall, 2002. In practice, working capital management has become one of the most important issues in the organizations where many financial executives are struggling to identify the basic working capital drivers and an appropriate level of working capital Lamberson, 1995. Consequently, companies can minimize risk and improve the overall performance by understanding the role and drivers of working capital management. A firm may adopt an aggressive working capital management policy with a low level of current assets as a percentage of total assets, or it may also be used for the financing decision