Cash conversion cycle and corporate performance: Global evidence
By Chong-Chuo Chang. International Review of Economics and Finance, 2018
116 citations recorded by the source corpus.
Previous studies have seldom explored issues regarding liquidity management; hence, we conduct a global empirical analysis of the relationship between the cash conversion cycle (CCC) and corporate performance by adopting enterprises from different countries as samples. We observe a negative relationship between the CCC and firm's profitability and value, supporting that an aggressive working capital policy can enhance corporate performance; however, this effect reduces or reverses when firms exist at the lower CCC level. Results remain identical after considering endogenous problems, changes in macroeconomic environments, economic development status, financial crises, corporate governance, and financial constraints.
Subfields: Accounting, Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/a7c69cb751b566f878f703034068756602b34ea0
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Citations in the corpus
- Supply chain finance, financial constraints and corporate performance: An explorative network analysis and future research agenda (2019, result): “This traditional view of WCM has received further support from the studies of García-Teruel and Martínez-Solano (2007), Autukaite and Molay (2014), Zeidan and Shapir (2017) and Chang (2018).”
- The Impact of Working Capital Management on Firm Profitability: Empirical Evidence from the Polish Listed Firms (2020, background): “On the other hand, overinvestment in working capital requires financing and, consequently, supplementary costs, and may also generate adverse effects and financial losses for shareholders (Chang 2018; Aktas et al. 2015).”