Assets Size and Firm’ Financial Activities Efficiency: Evidence from Industrial and Consumer Products Sector

摘要

Industrial and consumer products are the two main sectors which contributed significantly to the country’ gross domestic product (GDP). Efficiency of the firms involved in these two sectors is very important to control the cost of production and prices of production to ensurethe well-being of consumers. Therefore, this study aimed to identify financial activity efficiency (FAE) among firms and sectorial comparative performances. This study also aims to identify the relationship between size of firms’ assets and FAE performances. The financial statementsfrom 120 sample firms for the period of 5 years (2010–2014) was used as secondary data in this study. FAE performances measurements namely assets turnover, inventory turnover, working capital turnover, and account receivable turnover were used as the proxy for FAE measurement. Statisticaltest of descriptive analysis, Mann-Whitney, and spearman correlation were performed to answer the research questions. The results showed that FAE-inventory turnover ratio for both sectors were performing higher than industry average. In general, most of the FAE performance indicators of bothsectors were indifference except for the account FAE-receivable turnover. The study further found that firm’ assets size was positively influenced the performance of FAE-inventory and receivable turnover.