Determinants of Working Capital Management

Document Type


Source of Publication

SSRN Electronic Journal

Publication Date



Purpose - The purpose of this paper is to provide empirical evidence for the effective management of working capital and for its impact on the performance of Greek listed companies in terms of profitability, performance and market valuation.Design/Methodology/approach -This research approach is based on the examination of 211 listed on the Athens Stock Exchange firms for a period of six years from 2005 to 2010. This research intents to investigate the effects of the working capital management factors for Greek enterprises' yields through the examination of profitability (gross operating profit), the performance (return on assets) and the market value of the firm (Tobin Q).Findings -The results of our research showed that there are significant negative correlations between the variables of working capital and the business performance. Thus, we must highlight the importance of managing working capital to ensure improved profitability, efficiency and market value of companies, as this aspect should be part of strategic and operational thinking of Greek enterprises, in order to operate effectively and efficiently.Research Limitations/implications -The main limitation of this research is that examining a sample of listed firms does not allow for generalization of conclusions for all listed firms.Originality/value - This paper provides new evidence for the effects of the determinants of working capital on the efficiency, profitability and market value of listed firms.




Elsevier BV




Working capital management, Cash conversion cycle, Athens Stock Exchange

Indexed in Scopus


Open Access


Open Access Type

Green: A manuscript of this publication is openly available in a repository