Work

Net operating working capital and firm value: A cross-country analysis

Year: 2020

Type: article

Abstract: Here, we use a sample of firms from 30 countries during the period 1995–2013 to examine the relationship between net operating working capital (NWC) and firm value. Specifically, we show that the value of NWC varies across countries and that it depends on both investor protection and a country’s financial and economic development. Our findings imply that shareholders value NWC more in countries with strong enforcement of investor rights, and greater financial and economic development. Jel Classification: G15; G18; G31; G32

Source: BRQ Business Research Quarterly

DOI: 10.1177/2340944420941464

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: diamond

OpenAlex ID: W4248965974

FWCI: 9.767

Cites: 39

Cited by: 37

Related to: 10