The purpose of this research is to investigate the effect of working capital management on firm's profitability. Using panel data analysis, pooled OLS and Fixed Effect estimation, for a sample of Singapore firms from 2004 to 2011, we find that managers can increase profitability by managing...

The final topic in a series looking at financial management from a theoretical perspective, working capital management provides the focus of the current article. We investigate how three key axioms — the risk-return tradeoff, agency conflicts, and stockholder wealth maximization — relate to...

The recent economic downturn of 2007-2008 has brought renewed focus on working capital policies. In this paper we examine the role of business cycles on the working capital-profitability relationship using a sample of Finnish listed companies over an 18 year period. We find the impact of...

This study comparatively examines the determinants of working capital management for listed vs. unlisted firms, and assesses the impact of this policy on profitability by focusing on the cash conversion cycle, a commonly used measure of working capital management. By using a large UK public and...

Persuaded by the pecking order assumptions, where internal fund is preferred over debt and equity when financing investment projects, this study provided empirical evidence on the interaction between working capital management and corporate debt structure, and the effect of this on corporate...

This study empirically examines the relationship between working capital management and profitability of ACC Cement Company, the leading cement manufacturer of the country for assessing the impact of working capital management on profitability during the period 1999-2000 to 2009-10. The impact...

By excluding the change in non-operational working capital in calculating the net working capital for the FCF, analysts create a hypothetical or ‘virtual' cash flow. This may, or may not, be feasible given the firm's business plan, as funds may be earmarked for future capex, or other purposes....

WORKING CAPITAL MANAGEMENT (WCM) is the most dynamic financial decision making aspect of every business entity as it involves the management of ever-changing and dynamic current assets and adjusting them with the level of sales and market demands. WCM being a major revenue-generating activity is...

Working capital management is a very significant decision aspect of every business entity as it facilitates smooth functioning, revenue generation, and efficient asset utilization. In this context, the current study examined the structure of current assets, working capital policy comprising of...