The impact of working capital on the value of the company in light of differing size, growth, and debt

Tamer Bahjat Sabri ()
Additional contact information
Tamer Bahjat Sabri: Ramallah, West Bank

Business and Economic Horizons (BEH), 2012, vol. 7, issue 1, 27-41

Abstract: This study investigates the potential effect of the working capital management on the value of the industrial companies in Jordan, by studying determinants (company size, company growth, leverage) that affect company value measured by Tobin's Q (TQ). Also it uses an improved methodology to produce three indexes (benchmarks) that can present the suitable information for mangers and investors. To achieve the objectives of the study, a sample constituted by forty-one (41) industrial companies was studied. The study covered the period from 2000 to 2007. Regression analysis and Mann-Whitney-U Test were used to test the hypotheses of the study. The results shows that R2 for small size companies is higher than big size companies. And it is noted that the average TQ for companies with big size is higher than the average for small-sized companies.

Keywords: Tobin's Q; working capital; company size; company growth; leverage. (search for similar items in EconPapers)
JEL-codes: G31 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://academicpublishingplatforms.com/downloads/p ... capital_pp.27-41.pdf (application/pdf)
http://academicpublishingplatforms.com/article.php ... umber=7&article=1397 (text/html)

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:pdc:jrnbeh:v:7:y:2012:i:1:p:27-41

Access Statistics for this article

Business and Economic Horizons (BEH) is currently edited by Orifjan Namozov, Ph.D.

More articles in Business and Economic Horizons (BEH) from Prague Development Center Contact information at EDIRC.
Bibliographic data for series maintained by Jaroslav Holecek ( this e-mail address is bad, please contact ).