The Effect Of Working Capital Management On Firm Profitability: Evidence From Turkey

Topics:
Working Capital
Tags:
Finance,
Managerial Accounting,
Profitability,
Science Alert,
Working Capital
Source:
Science Alert

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Overview: This paper analyzes the effect of working capital management on firm profitability. In accordance with this aim, to consider statistically significant relationships between firm profitability and the components of cash conversion cycle at length, a sample consisting of Istanbul Stock Exchange (ISE) listed manufacturing firms for the period of 1998-2007 has been analysed under a multiple regression model. Empirical findings show that accounts receivables period, inventory period and leverage affect firm profitability negatively; while growth (in sales) affects firm profitability positively.

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Format: HTML | Date: Jan 2009 | Pages: 5


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