A Study on the Relationship between Operating Performance and Cash Conversion Cycle for Taiwan Listed Companies

• Main Authors: Lin, Hsiao-Chiao, 林小喬
• Other Authors: Wang, Sue-Fung
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/62760677093382385022

碩士 === 國立交通大學 === 管理學院財務金融學程 === 103 === This research is done based on listed companies in Taiwan between 2008 and 2014, which examine the relationship between company operating performance and its Cash Conversion Cycle. The outcome of indicates: (1) For the entire sample industries, it was found that Cash Conversion Cycle has a negative effect on Return on Asset and Return on Equity. Return on Asset in particular, has a significant negative impact. (2) The sample from manufacturing industries shows that Cash Conversion Cycle has a negative effect on Return on Asset and Return on Equity, however, the larger the scale of the company, the smaller impact of Cash Conversion Cycle on company’s operation performance. (3) For non-manufacturing industries, it was found that Cash Conversion Cycle does not show any consistent relationship with company operating performance. This research result is also in accordance with past researches and references, which a company could shorten its Cash Conversion Cycle to improve its operating performances.