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WORLD VISION

WORLD Vol. 4 • No. 2 • Feb. 2011

ASSET MANAGEMENT AND ITS IMPACT ON FIRMS’
PRODUCTIVITY – A MANAGEMENT APPROACH

Md. Hasan Uddin Lecturer, Department of Finance and Banking,
Patuakhali Science and Technology University.
Md. Zakir Hosain Lecturer, Department of Finance,
Bangladesh University of Business and Technology (BUBT).

Abstract

A well designed and implemented asset management is expected to contribute positively to increase the productivity of a firm. In this research, we have selected a sample of 24 annual financial statements of four leather companies’ coverage the period 2004 – 2009. The purpose of this paper is to examine the impact of poor asset management on productivity. The different ratios have been used in this study to examine assets management efficiency of the sample enterprises. In order to measure the impact of poor assets management on capital productivity the correlation technique is used. The result shows that inventory turnover ratio, receivables turnover ratio, fixed asset turnover ratio and capital employed ratio is positively related to capital productivity where as current ratio, current asset to net sales, average collection period and total asset turnover ratio is negatively related to capital productivity. It also found through T-test that the correlation between different ratios and capital productivity have been significant.

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