The relationship between working capital management and profitability: empirical evidence from Morocco
Dissertant
Thesis advisor
University
Al Akhawayn University
Faculty
The School of Business Administration
University Country
Morocco
Degree
Master
Degree Date
2013
English Abstract
This research investigates the relationship between working capital management and profitability of firms using a sample of 48 non-financial firms listed on Casablanca Stock Exchange for a period of 7 years from 2006 to 2012.
The profitability measures used in this study as dependent variables are the return on assets (ROA) and the gross operating incomeas a percentage of total asset minus financial assets (GOI).
In addition, as independent variables, the study includes a comprehensive measure of working capital management that is the cash conversion cycle and its components: inventory conversion cycle, average collection period, and payables deferral period.
The findings show that there is a statistically significant positive relationship between cash conversion cycle and gross operating income, and between inventory conversion cycle and GOI.
This empirical research reveals that Moroccan firms can increase their profitability by correctly handling their cash conversion cycle and by managing to hold an optimal level of inventory.
Therefore, an efficient management of working capital can have a positive impact on profitability of Moroccan firms.
Main Subjects
Topics
No. of Pages
45
Table of Contents
Table of contents.
Abstract.
Chapter One : Introduction.
Chapter Two : Related literature and hypotheses.
Chapter Three : Data collection.
Chapter Four : Research methodology and variables.
Chapter Five : Discussion of results.
Chapter Six : Study limitations and further research.
Chapter Seven : Conclusion.
References.
American Psychological Association (APA)
Ibrahimi, Manal. (2013). The relationship between working capital management and profitability: empirical evidence from Morocco. (Master's theses Theses and Dissertations Master). Al Akhawayn University, Morocco
https://search.emarefa.net/detail/BIM-626296
Modern Language Association (MLA)
Ibrahimi, Manal. The relationship between working capital management and profitability: empirical evidence from Morocco. (Master's theses Theses and Dissertations Master). Al Akhawayn University. (2013).
https://search.emarefa.net/detail/BIM-626296
American Medical Association (AMA)
Ibrahimi, Manal. (2013). The relationship between working capital management and profitability: empirical evidence from Morocco. (Master's theses Theses and Dissertations Master). Al Akhawayn University, Morocco
https://search.emarefa.net/detail/BIM-626296
Language
English
Data Type
Arab Theses
Record ID
BIM-626296
