This article studies the impact of working capital management (WCM) on firm profitability (FP) in Vietnam. The study uses the Generalized Least Squares (GLS) regression method using a sample of 5,295 firms (observations) listed on stock market in Vietnam from 2009 to 2018. | Impact of working capital management on firm profitability Empirical study in Vietnam Accounting 6 2020 259 266 Contents lists available at GrowingScience Accounting homepage ac Impact of working capital management on firm profitability Empirical study in Vietnam Nguyen Thi Thanh Phuonga and Dang Ngoc Hungb aThuongmai University Vietnam bHanoi University of Industry Vietnam CHRONICLE ABSTRACT Article history This article studies the impact of working capital management WCM on firm profitability FP in Received February 2 2019 Vietnam. The study uses the Generalized Least Squares GLS regression method using a sample of Received in revised format 5 295 firms observations listed on stock market in Vietnam from 2009 to 2018. First the study found February 27 2020 that inventory turnover average receivables AR average payment AP cash conversion cycle Accepted March 1 2020 Available online CCC had negative impacts on the firm profitability FP . However when we continued using March 1 2020 quadratic function we found that INV AR AP and CCC had a non-linear relationship the U-curve Keywords with FP. These research results contribute managerial contributions for firms in efficiently using Working capital management capital when considering its investment policy. Days of inventory on hand Days of sales outstanding Average payment period Cash Conversion Cycle Profitability 2020 by the authors licensee Growing Science Canada 1. Introduction Working capital management WCM is one of important content in financial decision but it is not a new topic in the literature. However in the integration period of Vietnam economy with high competition the local firms face to many potential risks. Specifically in recent years an increasing Vietnam firms had financial difficulties even closed down or bankrupted. Therefore the firms depend on external investment when implementing working capital management strategy. How does WCM influence the firm profitability
