Working Capital and Financial Performance in the Energy Sector of Saudi Arabia: Moderating Role of Leverage

Abdul Rahman Shaik, Anis Ali and Ibtisam Dhuwayhi Alanazi
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Abdul Rahman Shaik: College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia.
Anis Ali: College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia
Ibtisam Dhuwayhi Alanazi: College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia

International Journal of Energy Economics and Policy, 2023, vol. 13, issue 3, 158-163

Abstract: The current study examines the effect of working capital (measured in terms of current ratio) on firm performance in the listed firms of Saudi Arabian energy sector during the period starting from 2012 to 2019. A pooled and panel data model was used to analyze the extracted data. The findings indicate that working capital has a considerable beneficial impact on company performance and that leverage has a significant negative impact. Even after moderating by an interaction variable, working capital still has a substantial negative influence on corporate performance.

Keywords: Working capital; firm performance; leverage; moderation; energy sector (search for similar items in EconPapers)
JEL-codes: L25 L71 M40 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2023-03-19

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