Work

Working capital management in SMEs

Year: 2009

Type: article

Abstract: This paper analyses the determinants of Cash Conversion Cycle (CCC) for small‐ and medium‐sized firms. It has been found that these firms have a target CCC length to which they attempt to converge, and that they try to adjust to their target quickly. The results also show that it is longer for older firms and companies with greater cash flows. In contrast, firms with more growth opportunities, and firms with higher leverage, investment in fixed assets and return on assets have a more aggressive working capital policy.

Source: Accounting and Finance

DOI: 10.1111/j.1467-629x.2009.00331.x

Authors: Sonia Baños‐Caballero, Pedro J. García‐Teruel, Pedro Martínez‐Solano

Institution: Universidad de Murcia

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,470