Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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The Difference of the Inventories Assets Turnover Change Ratio According to the Firm Size

기업 크기에 따른 재고자산회전 변화율의 차이

  • Lee, Jihye (School of Business, Kyungpook National University) ;
  • Choi, Young-Keun (Division of Business administration and economics, Konkuk University) ;
  • Kim, Pansoo (School of Business, Kyungpook National University)
  • Received : 2015.05.06
  • Accepted : 2015.06.04
  • Published : 2015.06.30
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Abstract

This paper studied the differences of the inventories asset turnover change ratio and several characteristics variable between large and small manufacturing firm group. Large and small firm group were determined based on number of labors and asset size. Several characteristics variable of firms such as assets size, sales growth rate, return on assets, leverage ratio, credit rating and age of firm were used to find out the differences of firm group. As a result, the inventory asset turnover change ratio of large firm was 5.16% and that of the middle and small firm was 9.3%. For the large firm, sales growth rate, ROA and credit rating affect inventory assets turnover change ratio. For the middle and small sized firm, Assets size, sales growth rate and credit rating affect inventory assets turnover change ratio. Using this result, we can say that manufacturing company need to consider their firm size and their characteristics to make their own operation strategy of inventory.

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References

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