The development of working capital management and its impact on profitability and shareholder value: Evidence from Germany

Autor:	Högerle Bernadette, Charifzadeh Michel, Ferencz Marlene, Kostin Konstantin B.
Jazyk:	angličtina
Rok vydání:	2020
Předmět:	working capital working capital management cash conversion cycle profitability return on capital employed shareholder value market value added germany panel data Production management. Operations management TS155-194 Personnel management. Employment management HF5549-5549.5
Zdroj:	Strategic Management, Vol 25, Iss 2, Pp 27-39 (2020)
Druh dokumentu:	article
ISSN:	1821-3448 2334-6191
Popis:	This study investigates empirically the development of working capital management and its impact on profitability and shareholder value in Germany. We analyse panel data of 115 firms listed on the German Prime Standard, covering the period from 2011 to 2017. The results provide evidence that efficient working capital management, indicated by a shorter cash conversion cycle, deteriorated over time, but that a shorter cash conversion has a positive impact on profitability and shareholder value. The findings highlight the need that managers should give greater priority to working capital optimization, even in a low-interest environment. The paper contributes to the literature by advancing this research area in Germany, and it is the first study investigating shareholder relationship with working capital management and all its determinants.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/10e11f8b223f4c40812cd56386ff388c Zobrazit plný text záznamu View record in DOAJ