Working Capital Management in Relation to the Size and Profitability of Companies in the Czech Republic

Markéta Šeligová ()
Additional contact information
Markéta Šeligová: Silesian University

Chapter Chapter 24 in Advances in Quantitative Economic Research, 2022, pp 339-359 from Springer

Abstract: Abstract The aim of this article is to find out how working capital and its management affect the size of companies and the profitability of companies operating in the manufacturing industry and wholesale and retail trade sector in the Czech Republic. In order to fulfill the aim of the article, the method of comparison and the generalized method of moments (GMM method) will be used. The data sample will include data for the period 2009 to 2019. The analysis will include companies operating according to the CZ-NACE classification in the manufacturing industry, wholesale, and retail trade sector in the Czech Republic. The data sample contained 3645 companies operating in the manufacturing industry and 5257 companies operating in the wholesale and retail trade sector. Using the comparison method and the GMM method a statistically significant relationship was found between working capital management and profitability and size of companies. It was found that variables such as cash conversion cycle, current assets ratio, current liabilities ratio, and working capital ratio affect the profitability of companies and the size of companies in the manufacturing industry and the wholesale and retail trade sector in the Czech Republic.

Keywords: Cash conversion cycle; GMM method; Inventory; Liabilities; Profitability of companies; Receivables; Size of companies; Working capital (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-98179-2_24

Ordering information: This item can be ordered from
http://www.springer.com/9783030981792

DOI: 10.1007/978-3-030-98179-2_24

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().