Naslov
Effects of working capital management on profitability : evidence from Croatia

Autori
Aljinović Barać, Željana ; Vuko, Tina ; Vučak, Tonči

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Economic integrations, competition and cooperation : accession of the Western Balkan Countries to the European Union : conference proceedings / Kandžija, V ; Kumar, A. - Rijeka : Ekonomski fakultet Sveučilišta u Rijeci, 2013, 578-589

ISBN
9789537813161

Skup
9th International conference “Economic integrations, competition and cooperation” : accession of the Western Balkan countries to the European Union

Mjesto i datum
Opatija, Hrvatska, 17.04.2013. - 19.04.2013

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
working capital management; profitability; trade industry; Croatia

Sažetak
Working capital management includes managing the relations between firm’s short-term assets and liabilities in order to obtain the optimum level of both. The objective of this paper is to empirically investigate the impact of working capital management on the profitability on the sample of trading firms, because the trade industry is the most common type of activity in Croatia. The effects of different variables of working capital management including the average collection period, inventory turnover in days, average payment period and cash gap are researched. Variables of return on assets (ROA) and return on equity (ROE) are employed as measures of company's profitability. The variables of debt ratio, sales growth, size of the company and working capital to total assets ratio have also been used for controlling the working capital management policy. Our findings are not consistent with the view of the traditional working capital theory and previous research results. Obtained results show that only the number of days accounts receivable is statistically significant correlated with the return on equity while statistically significant relation between other variables examined have not been found. Finally, statistically significant difference in working capital management policy between wholesale and retail trading companies is found.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA