This paper studies how the working capital position of small firms responds to changes in the level of economic activity. Fifty small firms were studied for the time period 1980-1991. The findings from this study showed that liquidity increased slightly for these firms during economic expansion...

Purpose – The object of the research presented in this paper is to provide empirical evidence on the effects of working capital management on the profitability of a sample of small and medium-sized Spanish firms. Design/methodology/approach – The authors have collected a panel of 8,872 small...

In the dynamic financial climate of the present day, companies should be aware of the potential of effective working capital management in reacting to market transformations. It is important to include the company owner's viewpoint in the research perspective. In this paper, we study the...