THE RELATIONSHIP BETWEEN WORKING CAPITAL AND FIRM PERFORMANCE: A HETEROGENEOUS PANEL APPLICATION

Authors : Emine KAYA, Filiz KONUK, Ömer KAYA

Pages : 151-164

Doi:10.32951/mufider.974849

View : 17 | Download : 11

Publication Date : 2021-10-01

Article Type : Research Paper

Abstract :This paper seeks to determine the working capital efficiency levels of firms in the manufacturing sector in Turkey and the impact of working capital efficiency on their profitability. To this end, a panel data analysis was conducted using quarterly data for the 2009-2018 period. The findings indicate that the working capital efficiency index has a positive impact on firm profitability and that the cash conversion cycle has no impact on firm profitability.
Keywords : Working Capital, Index Management, Firm Performance, ISE, Panel Data Analysis