BazEkon - Biblioteka Główna Uniwersytetu Ekonomicznego w Krakowie

BazEkon home page

Meny główne

Autor
Mielcarz Paweł (Akademia Leona Koźmińskiego w Warszawie), Osiichuk Dmytro (Akademia Leona Koźmińskiego w Warszawie), Wnuczak Paweł (Akademia Leona Koźmińskiego w Warszawie)
Tytuł
Working Capital Management through the Business Cycle : Evidence from the Corporate Sector in Poland
Źródło
Contemporary Economics, 2018, vol. 12, nr 2, s. 223-236, rys., tab., bibliogr. 34 poz.
Słowa kluczowe
Kapitał obrotowy, Cykl koniunkturalny, Rentowność
Working capital, Business cycles, Profitability
Uwagi
Klasyfikacja JEL: G32
summ.
Abstrakt
The paper examines the influence of the business cycle on working capital management strategies based on evidence from the Polish corporate sector. By exploring the interrelation between working capital investment and profitability ratios, we attempt to define the respective transmission mechanisms and summarize the principles of sound financial management across the economic cycle. We found that more profitable companies tend to implement a more conservative working capital management strategy during recessions and that underperforming firms may be urged to cut working capital in response to plummeting cash flows. The accumulation of precautionary cash reserves appears to help firms navigate through times of economic turmoil. The paper highlights the importance of working capital management for optimizing a firm's profitability. Research outcomes may point to the redistributive function of trade finance under conditions of financing constraints, which become particularly acute during troughs aggravated by a credit market crunch. (original abstract)
Pełny tekst
Pokaż
Bibliografia
Pokaż
  1. Aktas N., Croci E., & Petmezas D. (2015). Is working capital management value-enhancing? Evidence from firm performance and investments. Journal of Corporate Finance, 30, 98-113.
  2. Baskin J.B. (1987). Corporate liquidity in games of monopoly power. The Review of Economics and Statistics, 69(2), 312-319.
  3. Bieniasz A., & Gołaś Z. (2011). The influence of working capital management on the food industry enterprises profitability. Contemporary Economics, 5(4), 68-81.
  4. Bolek M. (2013). Working capital management, profitability and risk - analyse of companies listed on the Warsaw Stock Exchange. E-Finanse, 9(3), 1-10.
  5. Braun M., & Larrain B. (2005). Finance and the business cycle: International, inter-Industry evidence. Journal of Finance, 60(3), 1097-1128.
  6. Campello M., Graham J.R., & Harvey C. (2010). The real effects of financial constraints: Evidence from a financial crisis. Journal of Financial Economics, 97(3), 470-487.
  7. Corsten D., & Gruen T. (2004). Stock-outs cause walkouts. Harvard Business Review, 82(5), 26-28.
  8. Cuñat V. (2007). Trade credit: Suppliers as debt collectors and insurance providers. The Review of Financial Studies, 20(2), 491-527.
  9. Casey E., & O'Toole C.M. (2014). Bank lending constraints, trade credit and alternative financing during the financial crisis: Evidence from European SMEs. Journal of Corporate Finance, 27, 173-193.
  10. Chiou J., Cheng L., & Wu H. (2006). The determinants of working capital management. The Journal of American Academy of Business, 10(1), 149-155.
  11. Deloof M. (2003). Does working capital management affect profitability of Belgian firms? Journal of Business Finance & Accounting, 30(3-4), 573-588.
  12. Enqvist J., Graham M., & Nikkinen J. (2014). The impact of working capital management on firm profitability in different business cycles: Evidence from Finland. Research in International Business and Finance, 32, 36-49.
  13. Fazzari S., Hubbard G., Petersen B., Blinder A.S., & Poterba J.M. (1988). Financing constraints and corporate investment. Brookings Papers on Economic Activity, 19(1), 141-206.
  14. Fazzari S., & Petersen B. (1993). Working capital and fixed investment: New evidence on financing constraints. The RAND Journal of Economics, 24(3), 328-342.
  15. Ferrando A., & Mulier K. (2013). Do firms use the trade credit channel to manage growth? Journal of Banking & Finance, 37(8), 3035-3046.
  16. Garcia-Teruel P.J., & Martinez-Solano P. (2007). Effects of working capital management on SME profitability. International Journal of Managerial Finance, 3(2), 164 - 177.
  17. Gertler M.L., & Gilchrist S. (1994). Monetary policy, business cycles, and the behavior of small manufacturing firms. The Quarterly Journal of Economics, 109(2), 309-340.
  18. Grullon G., Michaely R., & Swaminathan B. (2002). Are dividend changes a sign of firm maturity? Journal of Business, 75(3), 387-424.
  19. Hill M.D., Kelly G.W., & Highfield M.J. (2010). Net operating working capital behavior: A first look. Financial Management, 39(2), 783-805.
  20. Jackowicz K., Kozłowski Ł., & Mielcarz P. (2016). Financial constraints in Poland: The role of size and political connections. Argumenta Oeconomica, 1(36), 225-240.
  21. Jackowicz K., & Mielcarz P. (2015). The Impact of Investment on Operational Performance during the Recent Crisis. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie/ Cracow Review of Economics and Management, 2(938), 31-43.
  22. Jensen M. (1986). Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review, 76(3), 323-329.
  23. Kieschnick R., Laplante M., & Moussawi R. (2013). Working capital management and shareholders' wealth. Review of Finance, 17(5), 1827-1852.
  24. Love I., Preve L.A., & Sarria-Allende V. (2007). Trade credit and bank credit: Evidence from recent financial crises. Journal of Financial Economics, 83(2), 453-469.
  25. Moss J., & Stein B. (1993). Cash conversion cycle and firm size. Managerial Finance, 19(8), 25-34.
  26. Moyen N. (2004). Investment-cash flow sensitivities: Constrained versus unconstrained firms. The Journal of Finance, 59(5), 2061-2092.
  27. Myers S.C., & Majluf N.S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221.
  28. Ng C.K., Smith J.K., & Smith R.L. (1999). Evidence on the determinants of credit terms used in interfirm trade. Journal of Finance, 54(3), 1109-1129.
  29. Nilsen J. (2002). Trade credit and the bank lending channel. Journal of Money, Credit, and Banking, 34(1), 226-253.
  30. Opler T., Pinkowitz L., Stulz R., & Williamson R. (1999). The determinants and implications of corporate cash holdings. Journal of Financial Economics, 52(1), 3-46.
  31. Pais M.A. & Gama P.M. (2015). Working capital management and SMEs profitability: Portuguese evidence. International Journal of Managerial Finance 11(3), 341 - 358.
  32. Petersen M., & Rajan R. (1997). Trade credit: Theories and evidence. Review of Financial Studies, 10(3), 661-691.
  33. Summers B., & Wilson N. (2002). Trade credit terms offered by small firms: Survey evidence and empirical analysis. Journal of Business Finance & Accounting, 29(3-4), 317-335.
  34. Yang X. (2011). Trade credit versus bank credit: Evidence from corporate inventory financing. The Quarterly Review of Economics and Finance, 51(4), 419-434.
Cytowane przez
Pokaż
ISSN
2084-0845
Język
eng
URI / DOI
http://dx.doi.org/10.5709/ce.1897-9254.273
Udostępnij na Facebooku Udostępnij na Twitterze Udostępnij na Google+ Udostępnij na Pinterest Udostępnij na LinkedIn Wyślij znajomemu