The effects of working capital management components on Government-Linked Companies (GLCs) performance in Malaysia.

In Malaysia, the Government-Linked Companies (GLCs) have played a significant role in the country‟s economy. In these companies, government has been the major of stakeholder. GLCs are involved in a wide range of industries and businesses such as banking, trading, telecommunication, manufacturing and others services sector. Past research had used different variables to measure the efficiency of working capital management. Empirical inquiry in this research area is still scanty. The main purpose of the study is to examine the effects of working capital management components on GLCs performance. In this study, the working capital management components include Cash Conversion Cycle (CCC), Cash Conversion Efficiency (CCE) and Day Working Capital (DWC). Panel Data Model, Descriptive Analysis, Correlation Regression, is among the statistical tools in the empirical investigation. Panel data were collected from the annual Financial Report of the 35 GLCs listed in the Bursa Malaysia, over an 8 year period, beginning from 2008 until 2015. The findings indicate that there is a positive and significant effect of CCE on GLCs performance. Meanwhile, DWC indicates the significant negative relationship on GLCs Performance. However, CCC was found to have a negative effect on GLCs performance, which indicates that the GLCs financial performance is good. Finding of this research recommends that the financial controller can improve or increase the profitability by managing efficiently the components of the working capital. The study also suggests that GLCs need to improve the skills and competencies of the financial team in order to improve performance as compared to other private large businesses or corporations.