The Relationship between Working Capital Management and Profitability: Evidence from Turkey
Open accessAbstract
The purpose of this study is to examine the relationship link working capital management and performance such as profitability between accountant receivable period, accountant payable period and cash conversion cycle on Istanbul Stock Exchange (ISE) during the last ten years.This paper examines the relationship between working capital management and profitability. A sample of 120 Turkish manufacturing firms listed on ISE for a period 10 years from 2003 to 2012 was selected. Multiple linear regression models have been used to find out the relationship between working capital management and firm performance in the context of Turkey. The findings of this paper show a significant and negative relationship between account receivable period and return on asset, return on equity, operating profit margin and net profit margin in the manufacturing industry. We expect that managers can create value for shareholders by reducing accountant receivable period, accountant payable period, cash conversion cycle
Integrity signals
Registry
Cites
Statistics
Claims the paper makes
Claims other papers make about this one
Each is checked against this paper’s own text: does it say what the citing paper says it does?
The result that CCC has an insignificant negative effect on ROA is also found in research by Samiloglu and Akgun (2016) and Jakpar et al. (2017).
“This result is also found in research conducted by Samiloglu and Akgun (2016) and Jakpar et al., (2017) which explain that the CCC has an insignificant negative effect on Return on Assets (ROA).”
From Working capital management and profitability: evidence from Indonesian manufacturing companies (2020) · cites this paper as Samiloglu and Akgun (2016)
A shorter inventory conversion period (ICP) is associated with higher profitability.
“The shorter period from raw material to product, the higher the profitability obtained.”
From Working capital management and profitability: evidence from Indonesian manufacturing companies (2020) · cites this paper as Samiloglu and Akgun (2016)
A shorter cash conversion cycle (CCC) is associated with higher profitability.
“When the CCC period is shorter, profitability will increase.”
From Working capital management and profitability: evidence from Indonesian manufacturing companies (2020) · cites this paper as Samiloglu and Akgun (2016)
Cites
Does Working Capital Management Affect Profitability of Belgian Firms?
Deloof, M. (2003) · Journal of Business Finance & Accounting · doi:10.1111/1468-5957.00008 · Cited by 1,849 · see citing works
Working Capital Management: The Effect of Market Valuation and Profitability in Malaysia
Binti Mohamad, N. E. A., & Mohd Saad, N. B. (2010) · International Journal of Business and Management · doi:10.5539/ijbm.v5n11p140 · Cited by 286 · see citing works
Flagged first, then by citations
Cited by
Sorted by citations
How financial literacy moderate the association between behaviour biases and investment decision?
Adil, M., Singh, Y., & Ansari, M. S. (2022) · Asian Journal of Accounting Research · doi:10.1108/ajar-09-2020-0086 · Cited by 236 · see citing works
Working capital management and profitability: evidence from Indonesian manufacturing companies
Aryawan, I., & Indriani, A. (2020) · Diponegoro International Journal of Business · doi:10.14710/dijb.3.1.2020.36-46 · Cited by 15 · see citing works
“Research studies that have the same results as Mansoori and Muhammad (2012) namely, Shah, Gujar, and Sohu (2018), Samiloglu and Akgun (2016), Yakubu, Alhassan, and Fuseini (2017), and Ponsian, Chrispina, and Tago (2014) which shows that the ICP has a negative relationship with profitability.”
BackgroundMethodResultInfluential
- Authors
- Şamiloğlu, F., & Akgün, A. İ.
- ORCID
- Akgün, Ali İhsan
- Venue
- Business and Economics Research Journal
- Published
- 2016-04-21
- Volume
- 7
- Issue
- 2
- Pages
- 1-1
- ISSN
- 1309-2448 (ISSN-L)
- OpenAlex
- W2341179076
- Cited by
- 90
- References
- 2
- Citations by year
- 2025: 3 · 2024: 11 · 2023: 13 · 2022: 13 · 2021: 12 · 2020: 11 · 2019: 10 · 2018: 8 · 2017: 3 · 2016: 5 · 2015: 1
- FWCI
- 31.92
- Type
- journal article
- Language
- en
- Open access
- green
- app.trdizin.gov.tr
- Licence
- other-oa
- Locations
- Business and Economics Research Journal (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Muğla Sıtkı Koçman University Institutional Repository (submittedVersion, other-oa)
- Topics
- Social Sciences › Business, Management and Accounting › Accounting › Working Capital and Financial Performance
- Social Sciences › Business, Management and Accounting › Management Information Systems › Supply Chain and Inventory Management
- Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
- Keywords
- working capital management, profitability, accounts receivable period, accounts payable period, cash conversion cycle, firm performance, return on assets, return on equity, return on sales, net profit margin, manufacturing companies, Turkish listed companies
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
