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Relationship Between Working Capital Management and Profitability of Listed Companies in the Athens Stock Exchange
TLDR
In this article, the authors investigated the relationship between corporate profitability and working capital management and established a relationship that is statistically significant between profitability, the cash conversion cycle and its components for listed firms in the ASE.Abstract:
In this paper we investigate the relationship of corporate profitability and working capital management. We used a sample of 131 companies listed in the Athens Stock Exchange (ASE) for the period of 2001-2004. The purpose of this paper is to establish a relationship that is statistically significant between profitability, the cash conversion cycle and its components for listed firms in the ASE. The results of our research showed that there is statistical significance between profitability, measured through gross operating profit, and the cash conversion cycle. Moreover managers can create profits for their companies by handling correctly the cash conversion cycle and keeping each different component (accounts receivables, accounts payables, inventory) to an optimum level.read more
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Journal Article
The Relationship Between Working Capital Management And Profitability: Evidence From The United States
TL;DR: In this paper, the authors extend Lazaridis and Tryfonidis's findings regarding the relationship between working capital management and profitability and find statistically significant relationship between the cash conversion cycle and profitability, measured through gross operating profit.
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The Effect of Working Capital Management on Firm Profitability: Evidence from Turkey
F. Samiloglu,Kartal Demirgüneş +1 more
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Working Capital Management and Corporate Profitability: Evidence from Panel Data Analysis of Selected Quoted Companies in Nigeria
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Effect of Working Capital Management on Firm Profitability: Empirical Evidence from India
Amisha Sharma,Satish Kumar +1 more
TL;DR: In this article, the authors examined the effect of working capital management on profitability of Indian firms and found that inventory of number of days and accounts payable are negatively correlated with a firm's profitability.
The relationship between working capital management and profitability: a vietnam case
TL;DR: In this paper, the authors investigated the relationship existing between profitability, the cash conversion cycle and its components for listed firms in Vietnam stock market and found that there is a strong negative relationship between profitability measured through gross operating profit, and the Cash conversion cycle.
References
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Book
Introduction to Linear Regression Analysis
TL;DR: In this paper, the authors propose a simple linear regression model with variable selection and multicollinearity for robust regression, and validate the model using regression analysis and validation of regression models.
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Introduction to Linear Regression Analysis
TL;DR: Elements of Sampling Theory and Methods is unique in its presentation of materials, and the book’s price is reasonable in comparison to the other four books mentioned in this area.
Posted Content
Does Working Capital Management Affect Profitability of Belgian Firms
TL;DR: In this paper, the relation between working capital management and corporate profitability is investigated for a sample of 1009 large Belgian non-financial firms for the 1992-1996 period, and the results suggest that managers can increase corporate profitability by reducing the number of days accounts receivable and inventories.
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The Exploitation of Relationships in Financial Distress: The Case of Trade Credit
TL;DR: In this article, the authors developed optimal pricing, lending, and renegotiation strategies for companies in relationships where one firm is highly dependent on the other, and the model also explains the existence of “teaser” interest rates and convenience classes.
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Trade credit, quality guarantees, and product marketability
TL;DR: In this paper, the authors consider trade credit as a way that firms can guarantee product quality, rather than as a means of financing less creditworthy firms, and seek, and provide, possible explanations for observed phenomena such as relatively shorter (or no) trade credit terms for consumer and food products and relatively longer terms for heavy industrial equipment.
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