Improving profitability by managing working capital in the value chain of pulp and paper industry

International Journal of Managerial and Financial Accounting

Volumn 3, Issue 4, 2011, Pages 348-366

  Viskari, Sari ^a   Pirttilä, Miia ^a   Kärri, Timo ^a  

^a LAPPEENRANTA UNIVERSITY OF TECHNOLOGY   (Finland)

Author keywords

accounts payable; accounts receivable; inventories; profitability; pulp and paper industry; value chain; working capital management

Indexed keywords

EID: 84864722276     PISSN: 17536715     EISSN: 17536723     Source Type: Journal    
DOI: 10.1504/IJMFA.2011.043333     Document Type: Article

References (39)

1. Blackman, I.D. and Holland, C. (2006) ‘The management of financial supply chains: from adversarial to co-operative strategies’, in Suomi, R., Cabral, R., Hampe, J., Heikkilä, A., Järveläinen, J. and Koskivaara, E. (Eds.): Project E-society: Building Bricks, pp.82–95, Springer, New York.
2. Blinder, A.S. and Maccini, L.J. (1991) ‘The resurgence of inventory research: what have we learned?’, Journal of Economic Surveys, Vol. 5, No. 4, pp.291–328.
3. Choi, H., Blocher, J.D. and Gavirneni, S. (2008) ‘Value of sharing production yield information in a serial supply chain’, Production and Operations Management, Vol. 17, No. 6, pp.614–625.
4. Deloof, M. (2003) ‘Does working capital management affect profitability of Belgium firms?’, Journal of Business Finance & Accounting, Vol. 30, Nos. 3–4, pp.573–587.
5. Deloof, M. and Jegers, M. (1996) ‘Trade credit, product quality, and intragroup trade: some European evidence’, The Journal of Financial Management Association, Vol. 25, No. 3, pp.33–43.
6. Dong, H.P. and Su, J. (2010) ‘The relationship between working capital management and profitability: a Vietnam case’, International Research Journal of Finance and Economics, Vol. 6, No. 49, pp.59–67.
7. Ernst & Young (2007) At the Crossroads: Global Pulp and Paper Report 2007, EYGM Limited.
8. Filbeck, G., Kruger, T. and Preece, D. (2007) ‘CFO magazine’s ‘working capital survey’: do selected firms work for shareholders?’, Quarterly Journal of Business & Economics, Vol. 46, No. 2, pp.3–22.
9. Fisher, M. (1997) ‘What is the right supply chain for your product?’, Harvard Business Review, Vol. 75, No. 2, pp.105–116.
10. García-Teruel, P.J. and Martínez-Solano, P. (2007) ‘Effects of working capital management on SME profitability’, International Journal of Managerial Finance, Vol. 3, No. 2, pp.164–177.
11. Gentry, A., Vaidyanathan, R. and Wai, L. (1990) ‘A weighted cash conversion cycle’, Financial Management, Vol. 19, No. 1, pp.90–99.
12. Gitman, L.J. (1974) ‘Estimating corporate liquidity requirements: a simplified approach’, The Financial Review, Vol. 9, No. 1, pp.79–88.
13. Hâkansson, H., Kraus, K. and Lind, J. (Eds.) (2010) Accounting in Networks, Routledge, New York.
14. Hill, M.D., Kelly, G.W. and Highfield, M.J. (2010) ‘Net operating working capital behavior: a first look’, Financial Management, Vol. 39, No. 2, pp.783–805.
15. Hofler, D. (2009) ‘Strategies for high-yield working capital in today’s economic environment’, Outsourced Logistics, Vol. 2, No. 1, pp.26–29.
16. Hutchison, P.D., Farris, M.T. and Anders, S.B. (2007) ‘Cash-to-cash analysis and management’, CPA Journal, Vol. 77, No. 8, pp.42–47.
17. Jaiswal, M.P. and Kaushik, A. (2005) ‘Realising enhanced value due to business network redesign through extended ERP systems: case study of HLLNet’, Business Process Management Journal, Vol. 11, No. 2, pp.171–184.
18. James, R., Rushton, M., Zhu, A. and Willis, F. (2008) ‘Chinese producers creep up the top 100 table’, Pulp & Paper International, Vol. 50, No. 9, pp.25–33.
19. Jose, M.L., Lancaster, C. and Stevens, J.L. (1996) ‘Corporate returns and cash conversion cycles’, Journal of Economics and Finance, Vol. 20, No. 1, pp.33–46.
20. Lazaridis, I. and Tryfonidis, D. (2006) ‘Relationship between working capital management and profitability of listed companies in the Athens stock exchange’, Journal of Financial Management and Analysis, Vol. 19, No. 1, pp.26–35.
21. Long, M., Malitz, I.B. and Ravid, S.A. (1993) ‘Trade credit, quality guarantees, and product marketability’, The Journal of the Financial Management Association, Vol. 22, No. 4, pp.117–127.
22. Mathuva, D. (2010) ‘The influence of working capital management components on corporate profitability: a survey on Kenyan listed firms’, Research Journal of Business Management, Vol. 4, No. 1, pp.1–11.
23. Moers, F. (2007) ‘Doing archival research in management accounting’, in Chapman, S.C., Hopwood, A.G. and Shields, M.D. (Eds.): Handbook of Management Accounting Research, Vol. 1, pp.399–413, Elsevier, The Netherlands.
24. Neubert, G., Ouzrout, Y. and Bouras, A. (2004) ‘Collaboration and integration through information technologies in supply chains’, International Journal of technology Management, Vol. 28, No. 2, pp.259–273.
25. Olhager, J., Selldin, E. and Wikner, J. (2006) ‘Decoupling the value chain’, International Journal of Value Chain Management, Vol. 1, No. 1, pp.19–32.
26. Piranfar, H. (2009) ‘Innovative management of logistics and supply chains: the hard times’, International Journal of Business Performance and Supply Chain Modelling, Vol. 1, Nos. 2/3, pp.240–255.
27. Pirttilä, M., Viskari, S. and Kärri, T. (2010) ‘Working capital in the value chain: cycle times of pulp and paper industry’, Paper presented at the 19th Annual IPSERA Conference, Supply Management – Missing Link in Strategic Management, 16–19 May, Lappeenranta, Finland.
28. Porter, M. (1985) Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, New York.
29. Protopappa-Sieke, M. and Seifert, R.W. (2010) ‘Interrelating operational and financial performance measurements in inventory control’, European Journal of Operational Research, Vol. 204, No. 3, pp.439–448.
30. Raheman, A. and Nasr, M. (2007) ‘Working capital management and profitability – case of Pakistani firms’, International Review of Business Research Papers, Vol. 3, No. 1, pp.279–300.
31. Raheman, A., Afza, T., Qayyum, A. and Bodla, M.A. (2010) ‘Working capital management and corporate performance of manufacturing sector in Pakistan’, International Research Journal of Finance and Economics, Vol. 6, No. 47, pp.154–166.
32. Richards, V.D. and Laughlin, E.J. (1980) ‘A cash conversion cycle approach to liquidity analysis’, Financial Management, Vol. 9, No. 1, pp.32–38.
33. Salawu, R.O. (2006) ‘Industry practice and aggressive conservative working capital policies in Nigeria’, European Journal of Scientific Research, Vol. 13, No. 3, pp.294–304.
34. Saranga, H. (2009) ‘The Indian auto component industry – estimation of operational efficiency and its determinants using DEA’, European Journal of Operation Research, Vol. 196, No. 2, pp.707–718.
35. Shah, N.H. (2009) ‘Optimisation of pricing and ordering under the two-stage credit policy for deteriorating items when the end demand is price and credit period sensitive’, International Journal of Business Performance and Supply Chain Modelling, Vol. 1, Nos. 2/3, pp.229–239.
36. Shin, H. and Soenen, L. (1998) ‘Efficiency of working capital management and corporate profitability’, Financial Practice and Education, Vol. 8, No. 2, pp.37–45.
37. Smith, J.K. (1987) ‘Trade credit and informational asymmetry’, Journal of Finance, Vol. 42, No. 4, pp.863–872.
38. Talha, M., Christopher, S.B. and Kamalavalli, A.L. (2010) ‘Sensitivity of profitability to working capital management: a study of Indian corporate hospitals’, International Journal of Managerial and Financial Accounting, Vol. 2, No. 3, pp.213–227.
39. Wang, Y.J. (2002) ‘Liquidity management, operating performance, and corporate value: evidence from Japan and Taiwan’, Journal of Multinational Financial Management, Vol. 12, No. 2, pp.159–169