Open AccessPosted Content
Working Capital Management: An Exploratory Study
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TL;DR: In this article, the authors explain the fundamentals of working capital management, the importance of its interaction with financial markets, and how this interaction might explain working capital patterns around the world.
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Abstract: Working capital management is an issue in which finance research is scarce. One possible reason behind this fact might relate to the relative ease with which efficient financial markets correct deviations from optimal working capital policies. However, in less efficient financial markets, pervasive among emerging economies, working capital management is critical for both firms’ performance and survival. The difference in the market’s ability for providing immediate assistance to firms might explain the differential consequences on firms’ profitability and financial distress. This article explains the fundamentals of working capital management, the importance of its interaction with financial markets, and how this interaction might explain working capital patterns around the world.
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Citations
Determinants of supply and demand for trade credit by micro, small and medium-sized enterprises
Claudinê Jordão de Carvalho,Rafael Felipe Schiozer +1 more
- 01 Aug 2015
TL;DR: In this article, the authors investigated the determinant factors of supply and demand for trade credit by micro, small and medium-sized enterprises (MSMEs), using data collected in a survey of managers from 481 firms in 32 cities in the states of São Paulo and Minas Gerais (Brazil) between 2008 and 2010.
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Value-Based Working Capital Management: Determining Liquid Asset Levels in Entrepreneurial Environments
Grzegorz Michalski
- 15 Apr 2014
TL;DR: The project that resulted in this monograph was financed from public funds for education for 2011 − 2014, the National Science Center under Contract No. DEC-2011/01/B/HS4/04744 as discussed by the authors.
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The Impact of Working Capital Management on Firm Profitability: Empirical Evidence from Borsa Istanbul
Mehtap Öner
- 30 Jul 2016
TL;DR: In this paper, the authors provide empirical evidence for the relationship between working capital management and profitability of a sample of 110 manufacturing firms listed on Borsa Istanbul during the period of 2005-2014.
Idiosyncratic Effect of Liquidity Management Strategies on Corporate Performance Valuation-A Study of Chemical Industry
Qaisar Ali Malik,Sufi Faizan Ahmed +1 more
- 01 Jan 2013
TL;DR: In this paper, the association among corporate financial strategies related to liquidity management and the corporate performance valuation measured by market to book value was identified and evaluated for the chemical industry of Pakistan.
Managing working capital efficiency in Turkish agribusinesses and the impact of globalization: insights from an emerging market
Ece C. Akdogan,Dilek Terniz Dinc +1 more
TL;DR: In this paper, the grasp of working capital dynamics is extremely important for managers, but also for policy makers, since inef ectivity is a major determinant of firm profitability.
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