Work

Does Working Capital Management Affect Profitability of Belgian Firms

Year: 2003

Type: preprint

Abstract: The relation between working capital management and corporate profitability is investigated for a sample of 1009 large Belgian non-financial firms for the 1992-1996 period. Trade credit policy and inventory policy are measured by number of days accounts receivable, accounts payable and inventories, and the cash conversion cycle is used as a comprehensive measure of working capital management. The results suggest that managers can increase corporate profitability by reducing the number of days accounts receivable and inventories. Less profitable firms wait longer to pay their bills.

Source: RePEc: Research Papers in Economics

Author: Marc Deloof

Institutions: University of Antwerp, Antwerp Management School

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: green

OpenAlex ID: W3125730074

Cites:

Cited by: 304

Related to: 10