AGGREGATE AND DISAGGREGATE MEASURES OF OPERATING AND NON-OPERATING WORKING CAPITAL INFLUENCE ON FIRM PERFORMANCE: EVIDENCE FROM MALAYSIA

The study is aimed at investigating the following issues: firstly, whether different types of working capital, namely operating and non-operating capital influence short-term (return on assets) long-term (Tobin’s Q) firm performance differently, secondly measures disaggregated aggregated (cash conversion cycle) differently. It uses panel data 208 listed non-financial firms in Malaysia covering period from 2013 to 2017, has been sourced Datastream. employs corrected standard errors regression model. found that quicker sale inventory increased both firm. Likewise, faster collection receivables long-term, but not short- term, performance. However, prompter payment payables also – inventory, receivables, contributed a more nuanced performance, compared capital. provided novel evidence that– higher non-