An Analysis of the Factors Determining the Working Capital Requirement for Non-Financial Companies (doi: 10.14706/icesos1724)

Kadayifci, Seyda and COSKUN, Ali (2017) An Analysis of the Factors Determining the Working Capital Requirement for Non-Financial Companies (doi: 10.14706/icesos1724). In: International Conference on Economic and Social Studies, May, 18-19, Sarajevo.

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Abstract

The main purpose of this study is to investigate the factors determining the working capital requirement of firms. Companies require working capital to improve the capacity, expand the business volume, reduce the risk of failing to meet their financial obligations, and become profitable and efficient. An inadequacy of the working capital causes interruptions in the business operations. This study investigates the determining factors of the working capital requirements of non-financial companies. The research analysis was done on publicly traded firms, and the data was collected from BIST-100 in Turkey for the years between 2011 and 2016. In this study, working capital requirement was used as the dependent variable. Factors such as profitability, leverage, growth, firm size, age and industry were tested as determining factors. PLS-SEM technique is employed in the research. Results reveal that two explanatory variables- company's leverage, and profitability- are significant factors that determine the companies’ working capital requirements for the period under study. Key words: Working Capital Requirement, Profitability, Leverage, Growth, Size, Age, Industry

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: International Conference on Economic and Social Sciences
Depositing User: Mrs. Emina Mekic
Date Deposited: 18 Aug 2017 10:17
Last Modified: 18 Aug 2017 10:17
URI: http://eprints.ibu.edu.ba/id/eprint/3661

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