Title: The antecedents to efficient working capital management: evidence from the Turkish manufacturing sector

Authors: Mumtaz Ali; Mehdi Seraj; Huseyin Ozdeser

Addresses: Department of Banking and Finance, Near East University, Nicosia, North Cyprus, Mersin 10, Turkey ' Department of Economics, Near East University, Nicosia, North Cyprus, Mersin 10, Turkey ' Department of Economics, Near East University, Nicosia, North Cyprus, Mersin 10, Turkey

Abstract: The purpose of this paper is to empirically analyse the influence of endogenous and exogenous factors on efficient working capital management (EWCM) of the Turkish manufacturing sector and analyse the impact of components of cash conversion cycle (CCC) on the performance, i.e., return on assets (ROA). Two-step generalised moment method (GMM) is used to extract the results using penal data of 133 firms in the manufacturing sector listed on Borsa Istanbul Turkey, consisting seven industries for the time period of eight years from 2012 to 2019. Results evidenced significant influence of endogenous (firm size, profitability, leverage, cash flow ratio) on CCC for manufacturing sector, while industry results are mixed. In addition, results of components of CCC and performance are significant. The sample has been taken from Turkey, and the results are generalisable in the emerged economy only. Therefore, comparative analysis of emerged and emerging economy can be done in future.

Keywords: working capital management; WCM; generalised moment method; GMM; manufacturing sector; Turkey.

DOI: 10.1504/IJEBR.2024.138072

International Journal of Economics and Business Research, 2024 Vol.27 No.3, pp.374 - 403

Received: 29 Jul 2021
Accepted: 21 Sep 2021
Published online: 21 Apr 2024 *

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