Firm size and supply chain finance in Indian pharmaceutical industry: Relational firm analysis of size determinants and cash conversion cycle

Ali, A.

Growing Science » Accounting » Firm size and supply chain finance in Indian pharmaceutical industry: Relational firm analysis of size determinants and cash conversion cycle

Journals

AC Volumes

Volume 1 (9)
- Issue 1 (5)
- Issue 2 (4)

Volume 2 (20)
- Issue 1 (5)
- Issue 2 (5)
- Issue 3 (5)
- Issue 4 (5)

Volume 3 (22)
- Issue 1 (7)
- Issue 2 (6)
- Issue 3 (4)
- Issue 4 (5)

Volume 4 (17)
- Issue 1 (5)
- Issue 2 (4)
- Issue 3 (4)
- Issue 4 (4)

Volume 5 (17)
- Issue 1 (4)
- Issue 2 (4)
- Issue 3 (4)
- Issue 4 (5)

Volume 6 (154)
- Issue 1 (5)
- Issue 2 (16)
- Issue 3 (18)
- Issue 4 (25)
- Issue 5 (30)
- Issue 6 (30)
- Issue 7 (30)

Volume 7 (205)
- Issue 1 (29)
- Issue 2 (27)
- Issue 3 (25)
- Issue 4 (30)
- Issue 5 (26)
- Issue 6 (32)
- Issue 7 (36)

Volume 8 (46)
- Issue 1 (10)
- Issue 2 (15)
- Issue 3 (14)
- Issue 4 (7)

Volume 9 (21)
- Issue 1 (5)
- Issue 2 (6)
- Issue 3 (5)
- Issue 4 (5)

Volume 10 (20)
- Issue 1 (5)
- Issue 2 (5)
- Issue 3 (5)
- Issue 4 (5)

Countries

Accounting

ISSN 2369-7407 (Online) - ISSN 2369-7393 (Print) Quarterly Publication Volume 7 Issue 1 pp. 197-206 , 2021

Firm size and supply chain finance in Indian pharmaceutical industry: Relational firm analysis of size determinants and cash conversion cycle Pages 197-206 Download PDF

Authors: Anis Ali

DOI: 10.5267/j.ac.2020.9.016

Keywords: Cash conversion cycle, Supply chain finance, Size determinants, Working Capital, Saudi Arabia

Abstract: The sales revenue, total resources, and Working Capital (WC) of the business organization measure the size of the firms. The Cash Conversion Cycle (CCC) defines the Supply Chain Finance (SCF) of the business organization and is affected by the size determinants of the firms. The components of the WC are considered to measure the CCC and define the status of the SCF of the business organization. The study is based on the secondary data obtained from the financial statements of the selected leading Indian pharmaceutical companies. The objective of the study is to find out the relation and degree of governance of size determinants on the SCF. The analysis is based on the ranks of size determinants and relative ranks of inventory days, accounts receivables days, and accounts payables days. The Spearman rank correlation is applied to get the qualitative relationship between the ranks of size determinants and ranks of components of CCC. The study reveals that size determinants affect the SCF positively but moderately while WC governs directly as WC comprises the components of CCC. The study suggests the shortening of the CCC by focusing on size determinants on WC and especially accounts payables in Indian pharmaceutical companies.

How to cite this paper

 Ali, A. (2021). Firm size and supply chain finance in Indian pharmaceutical industry: Relational firm analysis of size determinants and cash conversion cycle.Accounting, 7(1), 197-206.

Refrences

Ali, A. (2020a). Do the giant players enjoy profitability?: Analytical study of Pharmaceutical Industry of India. Journal of Talent Development and Excellence, 12(2s), 3249-3260.
Ali, A. (2020b). Does Size Affect Financial Performance?: Absolute and Relative Analysis of Materials Sector Companies of Saudi Arabia. Journal of Critical Reviews, 7(15), 212-220.
Ali, A. (2020c). Firm size and solvency in Indian pharmaceutical sector: A relational co-movement analysis. Accounting, 6(7), 1199-1208.
Balasubramanian, S., Shukla, V., & Chanchaichujit, J. (2020).Firm size implications for environmental sustainability of supply chains: evidence from the UAE. Management of Environmental Quality, 31(5), 1375-1406. https://doi.org/10.1108/MEQ-01-2020-0004
Bui, T. (2020a). How do financial leverage and supply chain finance influence firm performance? Evidence from construction sector. Uncertain Supply Chain Management, 8(2), 285-290.
Bui, T. (2020b). How does corporate performance affect supply chain finance? Evidence from logistics sector. Uncertain Supply Chain Management, 8(3), 563-568.
Bui, T. (2020c). Supply chain finance, financial development and profitability of real estate firms in Vietnam. Uncertain Supply Chain Management, 8(1), 37-42.
Bui, T., & Doan, T. (2020). Factors influencing supply chain finance of real estate sector: Evidence using GMM estimation. Uncertain Supply Chain Management, 8(3), 627-632.
Chand, P., Thakkar, J. J., & Ghosh, K. K. (2020). Analysis of supply chain performance metrics for Indian mining & earthmoving equipment manufacturing companies using hybrid MCDM model. Resources Policy, 68, 101742.
Chen, X., Li, S., & Wang, X. (2020). Evaluating the effects of quality regulations on the pharmaceutical supply chain. International Journal of Production Economics, 107770.
Cho, W., Ke, J. Y. F., & Han, C. (2019). An empirical examination of the use of bargaining power and its impacts on supply chain financial performance. Journal of Purchasing and Supply Management, 25(4), 100550.
Doan, T., & Bui, T. (2020). Nonlinear impact of supply chain finance on the performance of seafood firms: A case study from Vietnam. Uncertain Supply Chain Management, 8(2), 267-272.
Keown, A. J., Martin, J. D., Petty, J. W. and Scott, D. F. (2003). Foundations of Finance. 4th ed., Pearson Education, New Jersey.
Lin, Q., & Lin, X. (2020). Cash conversion cycle and aggregate stock returns. Journal of Financial Markets, 100560.
Maeenuddina, R. B., Hussain, A., Hafeez, M., Khan, M., & Wahi, N. (2020). Economic Value Added Momentum & Traditional Profitability Measures (ROA, ROE & ROCE): A Comparative Study. TEST- Engineering and Management, 83, 13762 – 13774,
Mani, V., Jabbour, C. J. C., & Mani, K. T. (2020). Supply chain social sustainability in small and medium manufacturing enterprises and firms’ performance: Empirical evidence from an emerging Asian economy. International Journal of Production Economics, 227, 107656.
Phan, T., Doan, X., & Nguyen, T. (2020). The impact of supply chain practices on performance through supply chain integration in textile and garment industry of Vietnam. Uncertain Supply Chain Management, 8(1), 175-186.
Upadhyay, S., & Smith, D. G. (2020). Cash, Cash Conversion Cycle, Inventory and COVID-19. Journal of Health Care Finance, 46(4),37-44.
Uyar, A. (2009). The relationship of cash conversion cycle with firm size and profitability: an empirical investigation in Turkey. International Research Journal of Finance and Economics, 24(2), 186-193.
Wang, X., Lin, Y. and Shi, Y. (2020). Linking industrial agglomeration and manufacturers inventory performance: the moderating role of firm size and enterprise status in the supply chain. Journal of Manufacturing Technology Management. https://doi.org/10.1108/JMTM-11-2019-0417
Younis, H., & Sundarakani, B. (2019). The impact of firm size, firm age and environmental management certification on the relationship between green supply chain practices and corporate performance. Benchmarking: An International Journal. 27(1), 319-346. https://doi.org/10.1108/BIJ-11-2018-0363
Zhou, H., & Li, L. (2020). The impact of supply chain practices and quality management on firm performance: Evidence from China's small and medium manufacturing enterprises. International Journal of Production Economics, 107816.