IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY OF MACEDONIAN INDUSTRIAL COMPANIES

Aleksandar Naumoski and Maja Naumovska
Additional contact information
Maja Naumovska: TAV Macedonia DOOEL, Skopje, Republic of North Macedonia.

Studii Financiare (Financial Studies), 2022, vol. 26, issue 2, 18-36

Abstract: Efficient and effective working capital management is crucial given its impact on the company's profitability. The focus of the research in this paper is the impact of individual components of working capital on the profitability of industrial companies. The research was conducted on a sample of industrial companies listed on the Macedonian Stock Exchange using their accounting data for a period covering ten years 2010 - 2019 by applying a panel regression analysis. We found that corporate profitability increases with increasing account receivable period, account payables payment period, company size, sales growth, and volatility in net operating profit. Additionally, profitability increases with decreasing in the cash conversion cycle and financial leverage. Inventories conversion period and fixed financial assets do not show a statistically significant relationship with the company profitability.

Keywords: corporate finance; operating cycle; cash cycle; panel data analysis; North Macedonia (search for similar items in EconPapers)
JEL-codes: E32 G31 G32 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.icfm.ro/RePEc/vls/vls_pdf/vol26i2p18-36.pdf

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:vls:finstu:v:26:y:2022:i:2:p:18-36

Access Statistics for this article

More articles in Studii Financiare (Financial Studies) from Centre of Financial and Monetary Research "Victor Slavescu" Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Mateescu ().