Determinants of the working capital requirement and the net operating cycle of Brazilian companies listed in B3
The working capital management is of great importance for the survival and profitability of the companies. Decisions of operational order can have both short-term and long-term consequences, affecting the operational performance of companies. Thus, the efficient management of working capital and the...
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| Format: | Article |
| Language: | English |
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Conselho Regional de Contabilidade de Santa Catarina
2019-09-01
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| Series: | Revista Catarinense da Ciência Contábil |
| Subjects: | |
| Online Access: | http://revista.crcsc.org.br/index.php/CRCSC/article/view/2842 |
| _version_ | 1811233125254037504 |
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| author | Sabrina Espinele da Silva Marcos Antônio de Camargos Simone Evangelista Fonseca Robert Aldo Iquiapaza |
| author_facet | Sabrina Espinele da Silva Marcos Antônio de Camargos Simone Evangelista Fonseca Robert Aldo Iquiapaza |
| author_sort | Sabrina Espinele da Silva |
| collection | DOAJ |
| description | The working capital management is of great importance for the survival and profitability of the companies. Decisions of operational order can have both short-term and long-term consequences, affecting the operational performance of companies. Thus, the efficient management of working capital and the knowledge of his determinants factors has relevance for business managers since it can impact the liquidity and profitability of companies. The aim of this study was to identify and analyze the determinants of working capital requirement (WCR) and net operating cycle (CF) requirements of Brazilian publicly held non-financial corporations, covering the period from March 2010 to December 2016 (28 quarters). Methodologically, we used regression analysis with panel data and the feasible generalized least squares model that is robust to heteroscedasticity problems. The results showed that the operating cash flow has a negative relation with the net operating cycle, while the asset return and the sales growth have a positive relation. In addition, the current liquidity, the size of the company and the leverage were significant and negatively related to the companies' need for working capital. |
| first_indexed | 2024-04-12T11:16:13Z |
| format | Article |
| id | doaj.art-de068e99ea324429aeccc2585f5323c2 |
| institution | Directory Open Access Journal |
| issn | 1808-3781 2237-7662 |
| language | English |
| last_indexed | 2024-04-12T11:16:13Z |
| publishDate | 2019-09-01 |
| publisher | Conselho Regional de Contabilidade de Santa Catarina |
| record_format | Article |
| series | Revista Catarinense da Ciência Contábil |
| spelling | doaj.art-de068e99ea324429aeccc2585f5323c22022-12-22T03:35:30ZengConselho Regional de Contabilidade de Santa CatarinaRevista Catarinense da Ciência Contábil1808-37812237-76622019-09-01180e2842e284210.16930/2237-7662201928421804Determinants of the working capital requirement and the net operating cycle of Brazilian companies listed in B3Sabrina Espinele da Silva0Marcos Antônio de Camargos1Simone Evangelista Fonseca2Robert Aldo Iquiapaza3Universidade Federal de Minas GeraisUniversidade Federal de Minas Gerais e Faculdade Ibmec de Minas GeraisUniversidade Federal de Minas GeraisUniversidade Federal de Minas GeraisThe working capital management is of great importance for the survival and profitability of the companies. Decisions of operational order can have both short-term and long-term consequences, affecting the operational performance of companies. Thus, the efficient management of working capital and the knowledge of his determinants factors has relevance for business managers since it can impact the liquidity and profitability of companies. The aim of this study was to identify and analyze the determinants of working capital requirement (WCR) and net operating cycle (CF) requirements of Brazilian publicly held non-financial corporations, covering the period from March 2010 to December 2016 (28 quarters). Methodologically, we used regression analysis with panel data and the feasible generalized least squares model that is robust to heteroscedasticity problems. The results showed that the operating cash flow has a negative relation with the net operating cycle, while the asset return and the sales growth have a positive relation. In addition, the current liquidity, the size of the company and the leverage were significant and negatively related to the companies' need for working capital.http://revista.crcsc.org.br/index.php/CRCSC/article/view/2842Administração de Curto PrazoNecessidade de Capital de GiroCiclo FinanceiroFinanças Corporativas |
| spellingShingle | Sabrina Espinele da Silva Marcos Antônio de Camargos Simone Evangelista Fonseca Robert Aldo Iquiapaza Determinants of the working capital requirement and the net operating cycle of Brazilian companies listed in B3 Revista Catarinense da Ciência Contábil Administração de Curto Prazo Necessidade de Capital de Giro Ciclo Financeiro Finanças Corporativas |
| title | Determinants of the working capital requirement and the net operating cycle of Brazilian companies listed in B3 |
| title_full | Determinants of the working capital requirement and the net operating cycle of Brazilian companies listed in B3 |
| title_fullStr | Determinants of the working capital requirement and the net operating cycle of Brazilian companies listed in B3 |
| title_full_unstemmed | Determinants of the working capital requirement and the net operating cycle of Brazilian companies listed in B3 |
| title_short | Determinants of the working capital requirement and the net operating cycle of Brazilian companies listed in B3 |
| title_sort | determinants of the working capital requirement and the net operating cycle of brazilian companies listed in b3 |
| topic | Administração de Curto Prazo Necessidade de Capital de Giro Ciclo Financeiro Finanças Corporativas |
| url | http://revista.crcsc.org.br/index.php/CRCSC/article/view/2842 |
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