Pool unit root test: Summary

Date: 05/27/14 Time: 15:00

Sample: 2009 2013
Series: AVC_C1, AVC_C2, AVC_C3, AVC_C4, AVC_C5
Exogenous variables: Individual effects
Automatic selection of maximum lags
Automatic selection of lags based on SIC: 0
Newey-West bandwidth selection using Bartlett kernel
Balanced observations for each test


Cross-
Method Statistic Prob.** sections Obs
Null: Unit root (assumes common unit root process)
Levin, Lin & Chu t* -1.62846 0.0517 5 20
Breitung t-stat -1.08407 0.1392 5 15

Null: Unit root (assumes individual unit root process)
Im, Pesaran and Shin W-stat -0.19254 0.4237 5 20
ADF - Fisher Chi-square 8.94314 0.5375 5 20
PP - Fisher Chi-square 7.65226 0.6628 5 20

Null: No unit root (assumes common unit root process)
Hadri Z-stat 1.32408 0.0927 5 25


** Probabilities for Fisher tests are computed using an asympotic Chi
-square distribution. All other tests assume asymptotic normality.

Pool unit root test table is showing the stationary among average collection period and all
related variables data is computed for five years and results shows that there is no relationship
between average collection period and related variables because the approximate "p value=0.09"
which is greater than 0.05 which indicates no relationship between the variables. however, it can
be said that change in average collection period cannot effect on other said variables. Hence, H
o

is accepted which indicates that there is no relation between the variables. Pearson test value
showing the negative sign which indicates that change in average collection period cannot effect
the relevant said impacts.

Pool unit root test: Summary
Date: 05/27/14 Time: 15:01
Sample: 2009 2013
Series: CCC_C1, CCC_C2, CCC_C3, CCC_C4, CCC_C5
Exogenous variables: Individual effects
Automatic selection of maximum lags
Automatic selection of lags based on SIC: 0
Newey-West bandwidth selection using Bartlett kernel
Balanced observations for each test


Cross-
Method Statistic Prob.** sections Obs
Null: Unit root (assumes common unit root process)
Levin, Lin & Chu t* -4.00533 0.0000 5 20
Breitung t-stat 0.03879 0.5155 5 15

Null: Unit root (assumes individual unit root process)
Im, Pesaran and Shin W-stat -0.71781 0.2364 5 20
ADF - Fisher Chi-square 11.1546 0.3456 5 20
PP - Fisher Chi-square 15.5241 0.1141 5 20

Null: No unit root (assumes common unit root process)
Hadri Z-stat 5.00000 0.0000 5 25


** Probabilities for Fisher tests are computed using an asympotic Chi
-square distribution. All other tests assume asymptotic normality.

Pool unit root test table is showing the stationary among cash conversion cycle and all related
variables data is computed for five years and results shows that there is relationship between
cash conversion cycle and related variables because "p value=0.0000" which is less than 0.05
which indicates relationship between the variables. However, it can be said that change in cash
conversion cycle can effect on all variables and vise versa. Hence, H
1
is accepted which indicates
that there is relation between the variables. Pearson test value showing the negative sign which
indicates that change in cash conversion cycle can effect the relevant said variables.

Pool unit root test: Summary
Date: 05/27/14 Time: 15:01
Sample: 2009 2013
Series: CR_C1, CR_C2, CR_C3, CR_C4, CR_C5
Exogenous variables: Individual effects
Automatic selection of maximum lags
Automatic selection of lags based on SIC: 0
Newey-West bandwidth selection using Bartlett kernel
Balanced observations for each test


Cross-
Method Statistic Prob.** sections Obs
Null: Unit root (assumes common unit root process)
Levin, Lin & Chu t* -26.3140 0.0000 5 20
Breitung t-stat 0.70333 0.7591 5 15

Null: Unit root (assumes individual unit root process)
Im, Pesaran and Shin W-stat -7.93549 0.0000 5 20
ADF - Fisher Chi-square 35.1830 0.0001 5 20
PP - Fisher Chi-square 41.5610 0.0000 5 20

Null: No unit root (assumes common unit root process)
Hadri Z-stat 2.70302 0.0034 5 25


** Probabilities for Fisher tests are computed using an asympotic Chi
-square distribution. All other tests assume asymptotic normality.

Pool unit root test table is showing the stationary among current ratio and all related variables
data is computed for five years and results shows that there is relationship between current ratio
and related variables because "p value=0.0034" which is less than 0.05 which indicates positive
relationship between the variables. However, it can be said that change in current ratio can effect
on all variables and vise versa. Hence, H
1
is accepted which indicates that there is relation
between the variables. Pearson test value showing the positive sign which indicates that change
in current ratio can affect the relevant said variables positively or negatively.



Pool unit root test: Summary
Date: 05/27/14 Time: 15:02
Sample: 2009 2013
Series: NP_C1, NP_C2, NP_C3, NP_C4, NP_C5
Exogenous variables: Individual effects
Automatic selection of maximum lags
Automatic selection of lags based on SIC: 0
Newey-West bandwidth selection using Bartlett kernel
Balanced observations for each test


Cross-
Method Statistic Prob.** sections Obs
Null: Unit root (assumes common unit root process)
Levin, Lin & Chu t* -1.25098 0.1055 5 20
Breitung t-stat -2.18857 0.0143 5 15

Null: Unit root (assumes individual unit root process)
Im, Pesaran and Shin W-stat -0.45836 0.3233 5 20
ADF - Fisher Chi-square 8.90823 0.5408 5 20
PP - Fisher Chi-square 9.32591 0.5015 5 20

Null: No unit root (assumes common unit root process)
Hadri Z-stat 3.91340 0.0000 5 25


** Probabilities for Fisher tests are computed using an asympotic Chi
-square distribution. All other tests assume asymptotic normality.

Pool unit root test table is showing the stationary among Net profit and all related variables data
is computed for five years and results shows that there is relationship between Net profit and
related variables because "p value=0.0000" which is less than 0.05 which indicates positive
relationship between the variables. However, it can be said that change in Net profit can effect
on all variables and vise versa. Hence, H
1
is accepted which indicates that there is relation
between the variables. Pearson test value showing the positive sign which indicates that change
in Net profit can affect the relevant said variables positively or negatively.

Pool unit root test: Summary
Date: 05/27/14 Time: 15:02
Sample: 2009 2013
Series: WCM_C1, WCM_C2, WCM_C3, WCM_C4, WCM_C5
Exogenous variables: Individual effects
Automatic selection of maximum lags
Automatic selection of lags based on SIC: 0
Newey-West bandwidth selection using Bartlett kernel
Balanced observations for each test


Cross-
Method Statistic Prob.** sections Obs
Null: Unit root (assumes common unit root process)
Levin, Lin & Chu t* -4.94472 0.0000 5 20
Breitung t-stat 0.92110 0.8215 5 15

Null: Unit root (assumes individual unit root process)
Im, Pesaran and Shin W-stat -1.16055 0.1229 5 20
ADF - Fisher Chi-square 14.3805 0.1563 5 20
PP - Fisher Chi-square 19.5098 0.0342 5 20

Null: No unit root (assumes common unit root process)
Hadri Z-stat 1.64872 0.0496 5 25


** Probabilities for Fisher tests are computed using an asympotic Chi
-square distribution. All other tests assume asymptotic normality.

Pool unit root test table is showing the stationary among working capital
management and all related variables data is computed for five years and results
shows that there is relationship between working capital management and related
variables because "p value=0.00496" which is less than 0.05 which indicates
positive relationship between the variables. However, it can be said that change in
working capital management can effect on all variables and vise versa. Hence, H
1

is accepted which indicates that there is relation between the variables. Pearson test
value showing the positive sign which indicates that change in working capital
management can affect the relevant said variables positively or negatively.



Dependent Variable: AVC?
Method: Pooled Least Squares
Date: 05/27/14 Time: 15:03
Sample: 2009 2013
Included observations: 5
Cross-sections included: 5
Total pool (balanced) observations: 25


Variable Coefficient Std. Error t-Statistic Prob.


C 0.627503 0.135428 4.633464 0.0001
WCM? 9.08E-12 8.30E-11 0.109356 0.9139


R-squared 0.000520 Mean dependent var 0.621529
Adjusted R-squared -0.042936 S.D. dependent var 0.606732
S.E. of regression 0.619620 Akaike info criterion 1.957199
Sum squared resid 8.830376 Schwarz criterion 2.054709
Log likelihood -22.46499 F-statistic 0.011959
Durbin-Watson stat 1.265397 Prob(F-statistic) 0.913869


Regression analysis is computed to predict casual link between combination of dependent
variable average collection period(AVC) with working capital management(WCM). Above table
leads that P=0.0001<0.05 and F= 0.913869 so the "P" value is indicating that there is strong
relationship between the AVC and WCM, change in AVC can change the WMC and vise versa.
Adjusted R-square value = -0.042936, which mean approximately -4% of variance is explained
according to average collection period.


Dependent Variable: CCC?
Method: Pooled Least Squares
Date: 05/27/14 Time: 15:03
Sample: 2009 2013
Included observations: 5
Cross-sections included: 5
Total pool (balanced) observations: 25


Variable Coefficient Std. Error t-Statistic Prob.


C -60952.38 1046987. -0.058217 0.9541
WCM? 0.001824 0.000642 2.842059 0.0092


R-squared 0.259910 Mean dependent var -1261117.
Adjusted R-squared 0.227732 S.D. dependent var 5450964.
S.E. of regression 4790241. Akaike info criterion 33.67868
Sum squared resid 5.28E+14 Schwarz criterion 33.77619
Log likelihood -418.9835 F-statistic 8.077297
Durbin-Watson stat 2.577614 Prob(F-statistic) 0.009231



Regression analysis is computed to predict casual link between combination of dependent
variable cash conversion cycle(CCC) with working capital management(WCM). Above table
leads that P=0.9541>05 and F= 0.009231 so the "P" value is indicating that there is no
relationship between the CCC and WCM, change in CCC cannot change the WMC and vise
versa. Adjusted R-square value = 0.227732, which mean approximately 23% of variance is
explained according to CCC.




Dependent Variable: CR?
Method: Pooled Least Squares
Date: 05/27/14 Time: 15:04
Sample: 2009 2013
Included observations: 5
Cross-sections included: 5
Total pool (balanced) observations: 25


Variable Coefficient Std. Error t-Statistic Prob.


C 1.270340 0.121294 10.47326 0.0000
WCM? 1.74E-10 7.44E-11 2.344167 0.0281


R-squared 0.192844 Mean dependent var 1.155658
Adjusted R-squared 0.157751 S.D. dependent var 0.604691
S.E. of regression 0.554950 Akaike info criterion 1.736741
Sum squared resid 7.083296 Schwarz criterion 1.834251
Log likelihood -19.70926 F-statistic 5.495121
Durbin-Watson stat 1.386220 Prob(F-statistic) 0.028075



Regression analysis is computed to predict casual link between combination of dependent
variable current ratio(CR) with working capital management(WCM). Above table leads that
P=0.0000<05 and F= 0.028075 so the "P" value is indicating that there is a good relationship
between the CR and WCM, change in CR can change the WMC and vise versa. Adjusted R-
square value = 0.157751 , which mean approximately 16% of variance is explained according to
CR.



Dependent Variable: NP?
Method: Pooled Least Squares
Date: 05/27/14 Time: 15:05
Sample: 2009 2013
Included observations: 5
Cross-sections included: 5
Total pool (balanced) observations: 25


Variable Coefficient Std. Error t-Statistic Prob.


C 4.344912 3.759116 1.155833 0.2607
AVC? 3.029773 2.697357 1.123238 0.2740
CCC? 1.23E-07 3.06E-07 0.402659 0.6913
CR? 2.590869 2.586985 1.001501 0.3280


R-squared 0.099495 Mean dependent var 9.066608
Adjusted R-squared -0.029148 S.D. dependent var 7.383714
S.E. of regression 7.490552 Akaike info criterion 7.010809
Sum squared resid 1178.276 Schwarz criterion 7.205829
Log likelihood -83.63511 F-statistic 0.773418
Durbin-Watson stat 1.867071 Prob(F-statistic) 0.521832


Regression analysis is computed to predict casual link between combination of variable net
profit for current ratio(CR), average collection period (AVC), cash conversion cycle (CCC) and
current ratio (CR) with working capital management(WCM). Above table leads that
P=0.2607>05 and F= 0.521832 so the "P" value is indicating that there is no relationship
between the CR, AVC, CCC and WCM. Adjusted R-square value = -0.029148 , which mean
approximately -02% of variance is explained.