Stochastic frontier modelling of working capital efficiency across Europe

Autor:	Godfred Adjapong Afrifa, Ishmael Tingbani, Oluseyi Oluseun Adesina
Rok vydání:	2022
Předmět:	Management of Technology and Innovation Business and International Management Applied Psychology
Zdroj:	Technological Forecasting and Social Change. 184:122012
ISSN:	0040-1625
DOI:	10.1016/j.techfore.2022.122012
Popis:	This paper adopts the stochastic frontier analysis (SFA) to model working capital efficiency (WCE) on a sample of 6170 European firms from 2009 to 2018. We find: (i) larger firms are more efficient with their working capital management (WCM) than smaller firms, (ii) higher cash holding contributes to WCE, (iii) high competition is less conducive to WCE than low competition, (iv) export and sales growth potential decrease WCE and (v) WCE increases with access to bank credit. In the analysis, a distinction is made between the “old” EU countries and the “new” EU countries. The results are sensitive to the year of admission into the EU. The results are robust to omitted variable bias, using a more novel approach.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::d759080620b9973d23a9e2dd9cf48307 https://doi.org/10.1016/j.techfore.2022.122012 Zobrazit plný text záznamu Full Text from ScienceDirect