THE EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM SOUTHEAST EUROPE
The research is designed to examine the effect of working capital management on companys profitability in the food industry in Southeast Europe, during the five years period (2010-2014). The sample included 9883 active companies. The influence of certain variables of working capital management (cur...
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| Format: | Article |
| Language: | English |
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Naučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt
2019-03-01
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| Series: | Ekonomika Poljoprivrede (1979) |
| Subjects: | |
| Online Access: | https://www.ea.bg.ac.rs/index.php/EA/article/view/1363 |
| _version_ | 1797825203570475008 |
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| author | Bojana Vuković Dejan Jakšić |
| author_facet | Bojana Vuković Dejan Jakšić |
| author_sort | Bojana Vuković |
| collection | DOAJ |
| description |
The research is designed to examine the effect of working capital management on companys profitability in the food industry in Southeast Europe, during the five years period (2010-2014). The sample included 9883 active companies. The influence of certain variables of working capital management (current liquidity, the ratio of current to total assets of companies, the ratio of current liabilities to total assets of companies, financial leverage and size of the company) was measured on the probability of higher profitability by applying probit regression analysis. The results of probit regression provide support to a hypothesis that most of the analyzed variables of working capital management have statistically significant impact on the probability of higher profitability. In this paper is also researched how the optimal level of working capital management can contribute to the growth of profitability and value of the company as a whole.
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| first_indexed | 2024-03-13T10:50:35Z |
| format | Article |
| id | doaj.art-bf2ef161017b474295daca5011933cb7 |
| institution | Directory Open Access Journal |
| issn | 0352-3462 2334-8453 |
| language | English |
| last_indexed | 2024-03-13T10:50:35Z |
| publishDate | 2019-03-01 |
| publisher | Naučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt |
| record_format | Article |
| series | Ekonomika Poljoprivrede (1979) |
| spelling | doaj.art-bf2ef161017b474295daca5011933cb72023-05-17T16:56:56ZengNaučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, BukureštEkonomika Poljoprivrede (1979)0352-34622334-84532019-03-0166110.5937/ekoPolj1901159VTHE EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM SOUTHEAST EUROPEBojana Vuković0Dejan Jakšić1University of Novi Sad, Faculty of Economics, SuboticaUniversity of Novi Sad, Faculty of Economics, Subotica The research is designed to examine the effect of working capital management on companys profitability in the food industry in Southeast Europe, during the five years period (2010-2014). The sample included 9883 active companies. The influence of certain variables of working capital management (current liquidity, the ratio of current to total assets of companies, the ratio of current liabilities to total assets of companies, financial leverage and size of the company) was measured on the probability of higher profitability by applying probit regression analysis. The results of probit regression provide support to a hypothesis that most of the analyzed variables of working capital management have statistically significant impact on the probability of higher profitability. In this paper is also researched how the optimal level of working capital management can contribute to the growth of profitability and value of the company as a whole. https://www.ea.bg.ac.rs/index.php/EA/article/view/1363Working capital ManagementProfitabilityFood industry |
| spellingShingle | Bojana Vuković Dejan Jakšić THE EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM SOUTHEAST EUROPE Ekonomika Poljoprivrede (1979) Working capital Management Profitability Food industry |
| title | THE EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM SOUTHEAST EUROPE |
| title_full | THE EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM SOUTHEAST EUROPE |
| title_fullStr | THE EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM SOUTHEAST EUROPE |
| title_full_unstemmed | THE EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM SOUTHEAST EUROPE |
| title_short | THE EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM SOUTHEAST EUROPE |
| title_sort | effect of working capital management on profitability evidence from southeast europe |
| topic | Working capital Management Profitability Food industry |
| url | https://www.ea.bg.ac.rs/index.php/EA/article/view/1363 |
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