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Does Working Capital Management Affect Profitability of Belgian Firms
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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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Abstract: 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. Trade credit policy and inventory policy are measured by number of days accounts receivable, accounts payable and inventories, and the cash conversion cycle is used as a comprehensive measure of working capital management. The results suggest that managers can increase corporate profitability by reducing the number of days accounts receivable and inventories. Less profitable firms wait longer to pay their bills.
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Citations
The Determinants of Working Capital Requirements in Palestinian Industrial Corporations
TL;DR: In this article, an econometric model was established and parameters were estimated based on the panel data for 11 industrial companies for eight years (2004-2011) and found that the cash conversion cycle, return on assets and operating cash flow are a significant determinant and positively related to the working capital requirements.
How does working capital management affect the profitability of Indian companies
Nufazil Altaf,Farooq Ahmad Shah +1 more
TL;DR: In this article, the authors examined the relationship between working capital management (WCM) and firm profitability for a sample of 437 non-financial Indian companies, based on secondary financial data obtained from Capitaline database, pertaining to a period of ten years.
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The Relationship between Working Capital Management and Profitability: Evidence from Saudi Cement Companies
TL;DR: In this article, the authors investigated the relationship between the working capital management (WCM) and the firms' profitability for the Saudi cement manufacturing companies and found that the current ratio is the most important liquidity measure which effected profitability, therefore, the cement firms must set a trade-off between these two objectives so that neither the liquidity nor profitability suffers.
Working capital management and profitability of listed manufacturing firms in Ghana
TL;DR: In this article, the authors examined the effect of working capital management on profitability of listed manufacturing firms in Ghana and employed a quantitative research approach within the causal research design using a balance panel of 20 manufacturing listed firms from 2015 to 2019.
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Investigating the relationship between working capital management and business performance: evidence from the 2008 financial crisis of EU-28
TL;DR: In this paper, the authors examined the relationship between working capital management and business performance using panel data analysis for a sample of EU-28 listed firms for the period from 2003 to 2012.
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Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
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