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The Effect Of Working Capital Management On Firm’s Profitability: Empirical Evidence From An Emerging Market

Melita Charitou et al.

Journal of Business and Economics Research2016https://doi.org/10.19030/jber.v14i3.9750article
ABDC C
Weight
0.67

What the paper says

In this study, we empirically investigate the effect of working capital management on firm’s financial performance in an emerging market. We hypothesize that working capital management leads to improved profitability. Our data set consists of firms listed in the Cyprus Stock Exchange for the period 1998-2007. Using multivariate regression analysis, our results support our hypothesis. Specifically, results indicate that the cash conversion cycle and all its major components; namely, days in inventory, days sales outstanding and creditors payment period - are associated with the firm’s profitability. The results of this study should be of great importance to managers and major stakeholders, such as investors, creditors, and financial analysts, especially after the recent global financial crisis and the latest collapses of giant organizations worldwide.

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https://doi.org/https://doi.org/10.19030/jber.v14i3.9750

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@article{melita2016,
  title        = {{The Effect Of Working Capital Management On Firm’s Profitability: Empirical Evidence From An Emerging Market}},
  author       = {Melita Charitou et al.},
  journal      = {Journal of Business and Economics Research},
  year         = {2016},
  doi          = {https://doi.org/https://doi.org/10.19030/jber.v14i3.9750},
}

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Evidence weight

0.67

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.81 × 0.4 = 0.33
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.