The Impact of Working Capital Management and Financing Strategies on Profitability: Evidence from Property and Construction Firms Listed on the Market for Alternative Investment (mai) in Thailand

Abstract

The objectives of this study are to examine the influence of working capital management and financing strategies on the profitability of the property & construction companies listed on the Market for Alternative Investment (mai) in Thailand. It also examines whether firm size affects the relationships between working capital components, financing indicators, and profitability. The sample consists of ten firms listed on the mai and observed from 2020 to 2025. Multiple regression analysis is employed to assess the effects of key variables on Return on Assets (ROA), Return on Equity (ROE), and Operating Profit Margin (OPM). The results show that the Debt Ratio has a strong negative effect on all profitability indicators, underscoring the risk associated with high leverage. Firm size exhibits a significant positive association with ROA, ROE, and OPM, suggesting that larger firms benefit from performance advantages arising from scale and resource efficiency. The average collection period is negatively associated with ROA and ROE, whereas its effect on OPM is insignificant. The average payment period exhibits a significant negative influence on OPM. Conversely, the inventory conversion period and the long-term debt-to-total debt ratio do not have a statistically significant effect on the profitability indicators. Overall, the findings underscore the importance of effective liquidity management and prudent financing decisions in enhancing firm performance within emerging capital markets.