How does working capital management affect the profitability of Spanish SMEs?

By Sonia Baños-Caballero, Pedro J. García-Teruel, P. Martínez‐Solano. 2012

347 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/ef94bfc07c764f94668909ca1cca9bf9849fd1d6

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Citations in the corpus

Is working capital management value-enhancing? Evidence from firm performance and investments (2015, neutral): “Banos-Caballero et al. (2012) focus on a sample of small and medium-sized Spanish firms, and document a concave relationship between NWC and operating performance.”
Cash Conversion Cycle and Value-Enhancing Operations: Theory and Evidence for a Free Lunch (2017, background): “Studies of the actions that firms actually take to manage their CCCs are scarce, although some authors provide indirect evidence that improving operations enhances working capital investments (Gardner et al. 1986; García-Teruel and Martinez-Solano 2007; Baños-Caballero et al. 2010, 2012, 2014).”
Working capital management and SMEs profitability: Portuguese evidence (2015, background): “…found the existence of a non-monotonic (concave) relationship between working capital level and firm profitability, which indicates that firms have an optimal working capital level that maximizes their profitability (see also Baños-Caballero et al., 2012 for evidence concerning Spanish SMEs).”
European trade credit use and SME survival (2018, neutral): “…transaction costs (Ferris, 1981); quickly identifying prospective buyer defaults (Smith, 1987); verification of product quality (Deloof and Jegers, 1996) and for the reasons of sales, profitability andmarket share (Petersen and Rajan, 1997; Banos-Caballero et al., 2012; Martínez-Sola et al., 2014).”
The impact of cash conversion cycle on firm profitability: An empirical study based on Swedish data (2014, background): “Based on the trade-offs between expected profitability vs risk and advantages vs disadvantages, a firm’s CCC can be optimized to maximize profitability and growth (Lazaridis and Tryfonidis, 2006; Ban˜os-Caballero et al. , 2011).”
Working capital management and firm profitability (2013, methodology): “However, with the exception of Baños-Caballero et al. (2012), all empirical studies apply linear regression models.”
The Interplay between Working Capital Management and a Firm’s Financial Performance across the Corporate Life Cycle (2020, background): “Firms pursue either an aggressive or a conservative WCS 23 and this strategic choice can significantly affect their risk and profitability [55].”
Working capital level influence on SME profitability (2016, positive): “Both high and low levels of WCM have benefits and costs to firms (Deloof, 2003; Banos-Caballero et al., 2012; Tauringana and Afrifa, 2013), meaning an optimal working capital level may exist at which the profitability of the firm is maximised (Banos-Caballero et al., 2012).”