Author/Authors
COŞKUN, Ender Pamukkale Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İşletme Bölümü, Turkey , KÖK, Dündar Pamukkale Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İşletme Bölümü, Turkey
Title Of Article
Effect of Working Capital Policies on Profitability: A Dynamic Panel Analysis
شماره ركورد
44307
Abstract
In this study, the effect of firm’s working capital policies on their profitability is investigated. We used panel data obtained from 74 manufacturing firms which were listed in ISE during 1991-2005.As a measure of working capital policies, cash conversion cycle, inventory period, accounts receivable period and accounts payable period are used. In addition, retun on assets is used as a measure of profitability.Dynamic panel data analysis method, the system-GMM estimation technique is applied study. It is concluded that the firms can increase their profitability by applying agressive investment policy to reduce account receivable period and inventory period. In other words, cash conversion cycle, accounts receivable period and inventory period show a negative relationship with profitability In addition, a positive relationship between profitability and accounts payable period has been determined.
From Page
75
NaturalLanguageKeyword
Working capital management , agressive working capital policies , cash conversion cycle , firm profitability , GMM
JournalTitle
Ege Academic Review (EAR)
To Page
85
JournalTitle
Ege Academic Review (EAR)
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