Citation

Huang, Changxiang and Hamdan, Sunita Lylia and Aridi, Nor Azliana (2025) An empirical study on supplier concentration and working capital: the moderating effect of internal control. International Journal of Applied Management Science, 17 (5). pp. 1-20. ISSN 1755-8913

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Abstract

Working capital is an essential resource for the continuity of corporate operations, and its management is crucial for maintaining a firm’s everyday activities. Senior management must prioritise the appropriate management of working capital to ensure the company’s long-term stability and sustainable development. This study analyses a data set of 7451 firm-year observations from A-share listed companies on the Shanghai and Shenzhen Stock Exchanges from 2012 to 2019 to evaluate the impact of supplier concentration and internal control on the efficacy of corporate working capital management. The empirical data indicate that increased supplier concentration is associated with a diminished cash conversion cycle, hence improving the efficiency of working capital utilisation. This suggests that fostering robust, cooperative relationships with a select group of essential suppliers might improve cash flow management and accelerate capital turnover. The study additionally reveals that the internal control system positively moderates this association. Implementing strong internal control systems can enhance the beneficial impact of supplier concentration on the effectiveness of working capital management

Item Type:	Article
Uncontrolled Keywords:	Working capital, suppliers, internal control
Subjects:	H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation > HG4701-4751 Government securities. Industrial securities. Venture capital
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	07 Jan 2026 01:45
Last Modified:	22 May 2026 07:40
URII:	http://shdl.mmu.edu.my/id/eprint/15154

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