[pic 1] the Impact of Working Capital Management on Profitability in Carlsberg Corporate, Diageo Company, Fraser and Neave(f&n) Company, and Starbuck Corporation in Malaysia

[pic 1]

The Impact of Working Capital Management on profitability in Carlsberg Corporate, Diageo Company, Fraser and Neave(F&N) Company, and Starbuck Corporation in Malaysia.

Bachelor of Business Management (Financial Management)

SEGi University Colleges

September 2016

Business research project submitted to Faculty of Business, Accounting and Management SEGi University, Malaysia

   Supervisor’s Name: Mr.Muthaloo

Subject: Business Research Project (BUS 3054)

Declaration

I declare that this dissertation for the work entitled “The Impact of Working Capital Management on profitability in Carlsberg Corporate, Diageo Company, Fraser and Neave(F&N) Company, and Starbuck Corporation in Malaysia” and that, to the best of my knowledge, this project work has not performed the basis for the award of any degree in University and similarly project if any.  

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07/12/16

Abstract

Many researchers have been done on the impact of working capital management on profitability. The purpose of this study is to observe the Impact of Working Capital Management on profitability in Carlsberg Corporate, Diageo Company, Fraser and Neave(F&N) Company, and Starbuck Corporation in Malaysia for the period 2011 to 2015. The data is collect for each company from their annual report. Data has been collected and using the correlation and regression analysis to apply and check the relationship between dependent variable and independent variable. Dependent variable in this title is working capital management and independent variable which is account receivable in days is outstanding, account payable in days is outstanding, and cash conversion cycle. This suggests that in order to witness the influence the working capital management in the financial policy on their company profitability.

Acknowledgement

First of all, I would like to extremely grateful to my supervisor, Mr. Muthaloo for his assistance that help me to focus and direction from the beginning of this work to the end. I am grateful to her to give me a professional opinion and continuous support throughout this project.

Secondly, I’m appreciated to Dr. Naail to teach me the ways to run secondary data in Statistical Package for the Social Sciences (SPSS) and give me more idea regarding my project when I have a problem that difficult to solve it in SPSS.

Finally, I would like to express my truthful gratitude to all my friends who have spent their precious time to give me suggestion in research.

Contents

Chapter 1        4

1.1 Research Background        4

1.2 Problem Statement        5

1.3 Research Question        6

1.4 Research Objective        7

1.5 Significance of the study        7

1.6 Scope of the study        8

1.7 Operational Definition        8

1.7.1 Profitability        8

1.7.2 Number of days inventory are held        8

1.7.3 Number of days account receivable is outstanding        8

1.7.4 Number of days account payable is outstanding        9

1.7.5 Cash Conversion Cycle        9

1.8 Proposed Chapter        10

Chapter 2        11

2.1: Introduction        11

2.2 Defining Topic        11

2.2.1 Profitability        11

2.3 Literature Review of the variable        13

2.3.1Number of Days Inventory (INV)are held        13

2.3.2Number of days account receivable is outstanding        14

2.3.3 Number of day’s accounts payable is outstanding        16

2.3.4 Cash Conversion Cycle (CCC)        17

2.4 Literature Gap        19

2.5 Research framework        20

2.6 Research Hypothesis        20

2.7 Conclusion        21

Chapter 3        22

3.1 Introduction        22

3.2 Research Instrument/Measurement        22

3.3 Pilot study        22

3.4 Research Design        22

3.4.1 Sample Size        22

3.4.2 Target population        23

3.4.3 Sampling Technique        23

3.5 Research Approach        23

3.5.1 Descriptive Analysis        23

3.5.2 Reliability Test        24

3.5.3 Normality Test        24

3.5.4 Linearity Test        24

3.5.5 Correlation Analysis        25

3.5.6 Multiple Regression Analysis        25

3.6 Conclusion        26

Chapter 4        27

4.1: Introduction        27

4.2: Pilot Study        27

4.3: Research Approach        27

4.3.1 Descriptive Analysis        27

4.3.2 Normality Test        29

4.3.3 Linearity Test        33

4.3.4 Correlation Analysis        48

4.3.5 Multiple Regression Analysis        54

4.4: Hypothesis Results        60

4.5: Conclusion        64

Chapter 5        65

5.1: Introduction        65

5.2: Overall Findings based on the Research Study        65