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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
Management Of Accounts Receivable And Financial Performance Of Manufacturing Firms Listed In Nairobi Stock Exchange, Kenya
TL;DR: In this paper, the authors studied the relationship between management of accounts receivable on financial performance of manufacturing firms listed in NSE and found that there was a significant relationship between credit extension policies, further it established that financing receivables has significant effect on the financial performance and receivable collection period has significant impact on the performance of the firm.
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Trade credit, SMEs and short-run survivorship: what we know and what we would like to know
TL;DR: In this paper, the authors draw the state of the art on the trade credit, one of the most alternative form of firm financing, especially for small and medium-sized enterprises (SMEs).
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A study on relationship between working capital and profitability
Hassan Ghodrati,Jaber Ghanbari +1 more
TL;DR: In this paper, the relationship between working capital management and profitability of accepted corporations in Tehran Stock Exchange over the period 2008-2012 was studied, including the average period of collecting accordance, periods of circulation of inventories, and cycle of cash conversion on the factories operating profits.
•Dissertation
The interaction effects of working capital management on the relationship between key determinants of working capital and firm performance
Yuen Leng Choong
- 01 Jan 2016
TL;DR: In this paper, the authors evaluated the moderating role of the working capital management on the relationship between key determinants of working capital and firm performance, and they concluded that the interaction effects of working-cap management in listed manufacturing firms as modifying either the strength or direction of relationships between predictors and criterion.
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References
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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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TL;DR: In this article, the authors focus on a sample of small firms whose access to capital markets may be limited and find evidence that firms use trade credit relatively more when credit from financial institutions is not available.
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