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Working Capital Management in Czech SMEs: An Econometric Approach
Erginbay UĞURLU, Irena JINDRICHOVSKA, Dana KUBICKOVA

Last modified: 2016-01-06

Abstract


In this paper we investigate the relationship of working capital management and corporate profitability on a sample of Czech small and medium firms. Capital structure and working capital management are two areas widely investigated by economic researchers in order to investigate forces determining profitability of firms. We use an initial sample of 3045 Czech SMEs for the period of 2009-2012 and we employ the panel data methodology to find whether there is the statically significant relationship between profitability and components of working capital – mainly inventories, receivables and payables and other variables based on the previous literature.

Keywords


cash conversion cycle, profitability, SMEs, working capital management, panel data

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