Research Article
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Year 2018, , 261 - 272, 30.12.2018
https://doi.org/10.25229/beta.487437

Abstract

References

  • Abbadi, S. M., & Abbadi, R. T. (2012). The Determinants of Working Capital Requirements in Palestinian Industrial Corporations. International Journal of Economics and Finance, 5(1), 65-75.
  • Akinlo, O. O. (2012). Determinants of working capital requirements in selected quoted companies in Nigeria. Journal of African Business, 13(1), 40-50.
  • Archavli, E., Siriopoulos, C., & Arvanitis, S. (2012). Determinants of Working Capital Management. Available at SSRN 2179907.
  • Chiou, J. R., Cheng, L., & Wu, H. W. (2006). The determinants of working capital management. Journal of American Academy of Business, 10(1), 149-155.
  • Deloof, M. (2003). Does working capital management affect profitability of Belgian firms?. Journal of business finance & Accounting, 30(3‐4), 573-588.
  • Demireli, E., Başci, E. S., & Karaca, S. S. (2014). İşletme Sermayesi ve Performans Göstergeleri Arasındaki İlişkiler: Borsa İstanbul Üzerine Bir Uygulama. Ege Stratejik Araştırmalar Dergisi, 5(1), 79-98.
  • Doğan, M., & Elitaş, B. L. (2014). Çalişma Sermayesi Gereksiniminin Belirleyicileri: Borsa İstanbul Gida Sektörü Üzerine Bir İnceleme. World of Accounting Science, 16(2).
  • Dursun, A., & Ayrıçay, Y. (2012). Çalişma Sermayesi-Kârlilik İlişkisinin İmkb Örneğinde 1996-2005 Dönemi Analizi. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 26(3-4).
  • Ganesan, V. (2007). An analysis of working capital management efficiency in telecommunication equipment industry. Rivier academic journal, 3(2), 1-10.
  • Gardner, M. J., Mills, D. L., & Pope, R. A. (1986). Working capital policy and operating risk: An empirical analysis. Financial Review, 21(3), 31-31.
  • Gombola, M. J., and Ketz, J. E. (1983). Financial ratio patterns in retail and manufacturing organizations. Financial Management, 45-56.
  • Gupta, M. C. (1969). The Effect Of Size, Growth, and Industry On The Financial Structure Of Manufacturing Companies. The Journal of Finance, 24(3), 517-529.
  • Gupta, M. C., and Huefner, R. J. (1972). A cluster analysis study of financial ratios and industry characteristics. Journal of Accounting Research, 77-95.
  • Hawawini, G., Viallet, C., & Vora, A. (1986). Industry influence on corporate working capital decisions. MPRA Paper No. 44894.
  • Lamberson, M. (1995). Changes in working capital of small firms in relation to changes in economic activity. American Journal of Business, 10(2), 45-50.
  • Lazaridis, I., & Tryfonidis, D. (2006). Relationship between working capital management and profitability of listed companies in the Athens stock exchange.Journal of financial management and analysis, 19(1).
  • Mansoori, D. E., & Muhammad, D. J. (2012). Determinants of working capital management: Case of Singapore firms, Research Journal of Finance and Accounting, 3(11).
  • Mathuva, D. (2009). The influence of working capital management components on corporate profitability: a survey on Kenyan listed firms. Research Journal of Business Management, 3(1), 1-11.
  • Nazir, M. S., & Afza, T. (2009). Impact of aggressive working capital management policy on firms’ profitability. The IUP journal of applied finance,15(8), 19-30.
  • Öztürk, M. B., & Demirgüneş, K. (2008). İşletme Sermayesi Gereksinimini Etkileyen Değişkenler Üzerine İMKB’de Bir Uygulama. Finans Politik & Ekonomik Yorumlar, 45(516), 47-56.
  • Shin, H. H., & Soenen, L. (1998). Efficiency of working capital management and corporate profitability. Financial practice and education, 8, 37-45.
  • Ugurlu, E., Jindrichovska, I., & Kubickova, D. (2014), Working Capital Management in Czech SMEs: An Econometric Approach. ICESBA, 23-24 Bucharest Romania.
  • Vijayalakshmi, S., & Bansal, N. (2013). Determinants of Working Capital in Cement Industry-A case study of ACC Ltd. Pacific Business Review International, 6(1), 45-50.
  • Weinraub, H. J., and Visscher, S. (1998). Industry practice relating to aggressive conservative working capital policies. Journal of Financial and Strategic Decision, 11(2), 11-18.

A Comparison of Working Capital Components of Turkish And Indian Cement Firms

Year 2018, , 261 - 272, 30.12.2018
https://doi.org/10.25229/beta.487437

Abstract

Working
capital management is the management of current assets and current liabilities.
It is the main issue for financial managers because there is a close relation between
working capital management and profitability. The components of working capital
determine the level of profitability and risk of the firm. This study analyzes
the comparison of working capital components of two different countries. For
this study, Turkish and Indian Cement Industries are selected. According to
list of top countries by cement production in 2013 based on USGS Mineral Program
Cement Report, India is the second and Turkey is the seventh largest producer
of cement in the world. This study indicates the working capital management
applications of two different countries. As working capital components, Average
Inventory Days, Average Payables Days, Average Net Trade Cycle, Average
Receivables Collection Periods, Cash and Equivalent/ Total Assets and Working
Capital/ Sales are used. Return on Assets, Return on Equity and Net Profit
Margin are used for profitability indicators. The independent ttest is used to
compare the means of working capital components of Turkish and Indian Cement
firms for a period of 2007-2014.

References

  • Abbadi, S. M., & Abbadi, R. T. (2012). The Determinants of Working Capital Requirements in Palestinian Industrial Corporations. International Journal of Economics and Finance, 5(1), 65-75.
  • Akinlo, O. O. (2012). Determinants of working capital requirements in selected quoted companies in Nigeria. Journal of African Business, 13(1), 40-50.
  • Archavli, E., Siriopoulos, C., & Arvanitis, S. (2012). Determinants of Working Capital Management. Available at SSRN 2179907.
  • Chiou, J. R., Cheng, L., & Wu, H. W. (2006). The determinants of working capital management. Journal of American Academy of Business, 10(1), 149-155.
  • Deloof, M. (2003). Does working capital management affect profitability of Belgian firms?. Journal of business finance & Accounting, 30(3‐4), 573-588.
  • Demireli, E., Başci, E. S., & Karaca, S. S. (2014). İşletme Sermayesi ve Performans Göstergeleri Arasındaki İlişkiler: Borsa İstanbul Üzerine Bir Uygulama. Ege Stratejik Araştırmalar Dergisi, 5(1), 79-98.
  • Doğan, M., & Elitaş, B. L. (2014). Çalişma Sermayesi Gereksiniminin Belirleyicileri: Borsa İstanbul Gida Sektörü Üzerine Bir İnceleme. World of Accounting Science, 16(2).
  • Dursun, A., & Ayrıçay, Y. (2012). Çalişma Sermayesi-Kârlilik İlişkisinin İmkb Örneğinde 1996-2005 Dönemi Analizi. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 26(3-4).
  • Ganesan, V. (2007). An analysis of working capital management efficiency in telecommunication equipment industry. Rivier academic journal, 3(2), 1-10.
  • Gardner, M. J., Mills, D. L., & Pope, R. A. (1986). Working capital policy and operating risk: An empirical analysis. Financial Review, 21(3), 31-31.
  • Gombola, M. J., and Ketz, J. E. (1983). Financial ratio patterns in retail and manufacturing organizations. Financial Management, 45-56.
  • Gupta, M. C. (1969). The Effect Of Size, Growth, and Industry On The Financial Structure Of Manufacturing Companies. The Journal of Finance, 24(3), 517-529.
  • Gupta, M. C., and Huefner, R. J. (1972). A cluster analysis study of financial ratios and industry characteristics. Journal of Accounting Research, 77-95.
  • Hawawini, G., Viallet, C., & Vora, A. (1986). Industry influence on corporate working capital decisions. MPRA Paper No. 44894.
  • Lamberson, M. (1995). Changes in working capital of small firms in relation to changes in economic activity. American Journal of Business, 10(2), 45-50.
  • Lazaridis, I., & Tryfonidis, D. (2006). Relationship between working capital management and profitability of listed companies in the Athens stock exchange.Journal of financial management and analysis, 19(1).
  • Mansoori, D. E., & Muhammad, D. J. (2012). Determinants of working capital management: Case of Singapore firms, Research Journal of Finance and Accounting, 3(11).
  • Mathuva, D. (2009). The influence of working capital management components on corporate profitability: a survey on Kenyan listed firms. Research Journal of Business Management, 3(1), 1-11.
  • Nazir, M. S., & Afza, T. (2009). Impact of aggressive working capital management policy on firms’ profitability. The IUP journal of applied finance,15(8), 19-30.
  • Öztürk, M. B., & Demirgüneş, K. (2008). İşletme Sermayesi Gereksinimini Etkileyen Değişkenler Üzerine İMKB’de Bir Uygulama. Finans Politik & Ekonomik Yorumlar, 45(516), 47-56.
  • Shin, H. H., & Soenen, L. (1998). Efficiency of working capital management and corporate profitability. Financial practice and education, 8, 37-45.
  • Ugurlu, E., Jindrichovska, I., & Kubickova, D. (2014), Working Capital Management in Czech SMEs: An Econometric Approach. ICESBA, 23-24 Bucharest Romania.
  • Vijayalakshmi, S., & Bansal, N. (2013). Determinants of Working Capital in Cement Industry-A case study of ACC Ltd. Pacific Business Review International, 6(1), 45-50.
  • Weinraub, H. J., and Visscher, S. (1998). Industry practice relating to aggressive conservative working capital policies. Journal of Financial and Strategic Decision, 11(2), 11-18.
There are 24 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Issues
Authors

İlker Sakınç 0000-0002-9549-8563

Publication Date December 30, 2018
Submission Date November 25, 2018
Acceptance Date December 16, 2018
Published in Issue Year 2018

Cite

APA Sakınç, İ. (2018). A Comparison of Working Capital Components of Turkish And Indian Cement Firms. Bulletin of Economic Theory and Analysis, 3(4), 261-272. https://doi.org/10.25229/beta.487437