Management of Working Capital and Capital Structure in Relation to the Economic Value Added of Selected Companies in the Czech Republic

Markéta Šeligová ()
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Markéta Šeligová: Silesian University in Opava, School of Business Administration in Karviná

Chapter Chapter 21 in Advances in Empirical Economic Research, 2023, pp 341-356 from Springer

Abstract: Abstract The article focuses on the management of working capital and capital structure in relation to the economic added value of companies in the Czech Republic. The aim of this article is to evaluate whether the components of working capital and capital structure affect the development of economic value added by companies in the Czech Republic. In order to fulfil the aim of the article, the method of comparison, correlation analysis, and generalised method of moments (GMM method) will be used. 3500 companies operating according to the CZ-NACE classification in manufacturing in the Czech Republic will be included in the research. The sample of data will include data on an annual basis for the period 2007–2018. The result will be to determine whether and how the components of working capital and capital structure may affect the development of economic value added of companies operating in the manufacturing industry in the Czech Republic. The research found a negative impact of variables such as net working capital, cash ratio and financial debt ratio on economic value added. Furthermore, a positive dependence on working capital, equity ratio and debt-equity ratio on economic value added was demonstrated.

Keywords: Correlation analysis; Economic value added; GMM method; Net working capital; Working capital (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-22749-3_21

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DOI: 10.1007/978-3-031-22749-3_21

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