Relationship Between Working Capital Management and Profitability of Listed Companies in the Athens Stock Exchange
Year: 2006
Type: preprint
Abstract: In this paper we investigate the relationship of corporate profitability and working capital management. We used a sample of 131 companies listed in the Athens Stock Exchange (ASE) for the period of 2001-2004. The purpose of this paper is to establish a relationship that is statistically significant between profitability, the cash conversion cycle and its components for listed firms in the ASE. The results of our research showed that there is statistical significance between profitability, measured through gross operating profit, and the cash conversion cycle. Moreover managers can create profits for their companies by handling correctly the cash conversion cycle and keeping each different component (accounts receivables, accounts payables, inventory) to an optimum level.
Source: SSRN Electronic Journal
Authors: Ioannis Lazaridis, Dimitrios Tryfonidis
Institution: University of Macedonia
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2528290986