The impact of working capital on profitability in the European tourism
Year: 2018
Type: dissertation
Abstract: Working Capital Management represents an important issue to take into consideration since it relates to corporate financial strategy and influences liquidity and profitability of companies. It is expected that an efficient working capital management to affect positively firms’ profitability and to contribute for value creation for shareholders. Analysing a sample of 59,131 European Touristic firms, the present research investigates the relation between working capital management and profitability for the period 2009-2016. Cash Conversion Cycle (CCC) is used as a working capital measure and ROA as a profitability measure. The results obtained suggest that companies are able to achieve higher profitability levels by decreasing the number of days in accounts receivable, inventories and payables. In conformity to previous studies, a negative relationship is found between CCC and profitability.
Source: Repositório do ISCTE-IUL
Author: Campina, Marisa Tomás
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7038288129