The relationship between working capital administration and productivity Essay
The relationship between working capital administration and productivity, 470 words essay example
Essay Topic:relationship,working
mainly collected from the published annual reports of the selected company.
2.2 Sampling procedure and sample
The results of the comparison to research the relationship between working capital administration and productivity are as per the following
The data was obtained from the annual reports of banks listed on Istanbul stock exchange from 2005 to 2014. Return on assets ratio was used as a dependent variable to measure the performance of banks and the independent variables were Default rate, Cost per Loan Asset and Capital Adequacy ratio as Credit risk management criteria.
The results of the equation to investigate the relationship between credit risk management and performance are as follows
Performance (ROA) = 0+ 1DR + 2CLA+ 3CAR+ e
Where
The return on assets (ROA) = EBIT/ Total Assets.
Default rate (DR) = Non Performing Loans/ Total loan
Cost per loan asset (CLA) = Total Operating Cost/ Total amount of loans.
Capital Adequacy Ratio (CAR) = Capital fund/ Risk Weighted Assets
The is the term of error.
Pearson correlation and multiple regressions will be used in the analysis. The methods help us to analysis the relationship between two variables, the dependent and independent.
2.3 Source of data
The data presentation will be in a narrative form although tables and graphs are to aid in reading, summarizing and understanding the findings. A quantitative research method was used. The data will obtained from the annual reports of a Turkish company for the period of 2005 to 2014. Data collected is analyzed in chapter three. The data will be organized and analyzed to answers research question and hypothesis.
2.4 Reliability and Validity
Bryman and Bell (2005, p.154) states that to validity as "a measure of how well a specific measurement of a concept, really gives an accurate picture of the concept". Our data was collected from the published annual financial reports of the company and it guarantees that they are accurate and reliable.
2.5 Data Analysis
We analyzed our data using correlation and Regression through a Statistical Package for Social Sciences' (SPSS). It analyzed the association between our autonomous variable and ward variables in surveying the effect of working administration on benefit. According to Monette et al. (2005, p.329), "a statistical association must exist between the independent and dependant variables, it can either be positive or negative.
The analysis between two variables was measured by correlation analysis. A statistic employed in assessing the strength between two variables in a hypothesized linear connection is a correlation coefficient r. Individual ANOVA's would also be calculated for each of variables. Descriptive statistics were involved in the analysis of data. The direction of linear and strength of relationship of the two variables is measured by correlation analysis (Tabachnick & Fidell, 2001, p. 56-57). A positive correlations show that has one variable increases the other also increase and a negative correlations indicate an opposite relationship
According to Franklin, M. F. (1980). Multiple regression is a statistical tool used to examine how the independent variables are related to dependent