• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2016 Vol.7(2): 38-43 ISSN: 2010-023X
DOI: 10.18178/ijtef.2016.7.2.496

The Impact of Working Capital Management on Firm Performance: An Empirical Evidence from the BIST SME Industrial Index

Fatih Konak and Ela Nur Güner
Abstract—Nowadays, it is crucial to be aware of the impacts of management of working capital indicators on firm performance. In order to figure out the existence of this relationship, there have been many research conducted. In this context, the main aim of this research is to determine the relationship between working capital management and firm performance of twenty-nine of thirty three companies listed on the Borsa Istanbul SME Industrial Index from 2011 to 2014. In this respect, pooled OLS test and cross sectional time series analysis technique is employed. We found negative relationship between Net Margin and, Short Term Debt Turnover Days and Cash Conversion Cycle. It can be interpreted that effective management of working capital, such as decrease in Short Term Debt Turnover Days, can positively affect firms’ performance.

Index Terms—Borsa Istanbul SME industrial index, working capital management, firm performance.

The authors are with Hitit University/ FEAS/ Department of Business Administration, Çorum, Turkey (e-mail: fatihkonak@hitit.edu.tr, ela.gnr.05@hotmail.com ).

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Cite: Fatih Konak and Ela Nur Güner, "The Impact of Working Capital Management on Firm Performance: An Empirical Evidence from the BIST SME Industrial Index," International Journal of Trade, Economics and Finance vol.7, no.2, pp. 38-43, 2016.

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