Corporate Investment and Corporate Performance : The Impact of Working Capital Management

This paper investigates the impact of working capital management on corporate investment and corporate performance of the manufacturing firms that are listed in Borsa Istanbul for the period 2005-2014. Firms that have positive excess net working capital and negative excess net working capital are taken into account. The corporate investment and corporate performance of these two groups are examined. According to the empirical findings, firms with positive excess net working capital and negative excess net working capital have higher corporate investment. It is also reported that firms which have higher net working capital have lower performance. In addition, the firms with lower investment in net working capital also show higher performance. Thus, a negative relation between excess net working capital and performance is reported