We examine the value effect of working capital management (WCM) for a large sample of US firms between 1982-2011. Our results indicate (i) the existence of an optimal level of working capital policy; and (ii) firms that converge to that optimal level (either by increasing or decreasing their...

This paper examines whether and to what extent exposure to climate risk affects the deployment of corporate resources to working capital. Using a large sample of listed US firms, we find that exposure to climate risk is negatively associated with working capital. This effect is accentuated in...