Year 2018, Volume 7, Issue 1, Pages 93 - 96 2018-09-01

THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPRICAL STUDY FROM TURKEY

Bengu Vuran [1] , Burcu Adiloglu [2]

10 99

Purpose- Cash gap or cash conversion cycle refers to the time interval between the date when a company pays cash out for the inventory it purchases and the date it receives cash from customers for the same inventory. That interval must be financed. Management of cash conversion cycle is vital issue in corporate financial management since it directly affects the profitability of the firms. The purpose of this study is to analyze the relationship of cash gap and corporate profitability.

Methodology- The data set includes all manufacturing and merchandising firms listed in Borsa Istanbul (BIST) for the year 2017. The financial sector firms are excluded since their financial statements have different aspects. Regression and correlation analyses are conducted to examine the relationship between the cash gap and profitability.

Findings- The results of the study evaluates how cash conversion cycle affects the profitability and show if there is a statistical significance between profitability the cash conversion cycle.

Conclusion- Managers of the companies that handle the cash conversion cycle correctly and keep each different component (accounts receivables, accounts payables, inventory) to an optimum level can create profits and seems successful from the views of investors. The study also contributes to the literature on the issue of relationship between cash gap and the firm’s profitability.

Cash gap, working capital management, profitability, Borsa Istanbul, cash cycle
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Primary Language en
Subjects Humanities, Multidisciplinary
Journal Section Articles
Authors

Orcid: 0000-0002-2428-1543
Author: Bengu Vuran (Primary Author)

Orcid: 0000-0001-9680-1408
Author: Burcu Adiloglu

Bibtex @research article { pap458471, journal = {PressAcademia Procedia}, issn = {}, eissn = {2459-0762}, address = {PressAcademia}, year = {2018}, volume = {7}, pages = {93 - 96}, doi = {10.17261/Pressacademia.2018.861}, title = {THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPRICAL STUDY FROM TURKEY}, key = {cite}, author = {Vuran, Bengu and Adiloglu, Burcu} }
APA Vuran, B , Adiloglu, B . (2018). THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPRICAL STUDY FROM TURKEY. PressAcademia Procedia, 7 (1), 93-96. DOI: 10.17261/Pressacademia.2018.861
MLA Vuran, B , Adiloglu, B . "THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPRICAL STUDY FROM TURKEY". PressAcademia Procedia 7 (2018): 93-96 <http://dergipark.org.tr/pap/issue/39064/458471>
Chicago Vuran, B , Adiloglu, B . "THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPRICAL STUDY FROM TURKEY". PressAcademia Procedia 7 (2018): 93-96
RIS TY - JOUR T1 - THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPRICAL STUDY FROM TURKEY AU - Bengu Vuran , Burcu Adiloglu Y1 - 2018 PY - 2018 N1 - doi: 10.17261/Pressacademia.2018.861 DO - 10.17261/Pressacademia.2018.861 T2 - PressAcademia Procedia JF - Journal JO - JOR SP - 93 EP - 96 VL - 7 IS - 1 SN - -2459-0762 M3 - doi: 10.17261/Pressacademia.2018.861 UR - https://doi.org/10.17261/Pressacademia.2018.861 Y2 - 2019 ER -
EndNote %0 PressAcademia Procedia THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPRICAL STUDY FROM TURKEY %A Bengu Vuran , Burcu Adiloglu %T THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPRICAL STUDY FROM TURKEY %D 2018 %J PressAcademia Procedia %P -2459-0762 %V 7 %N 1 %R doi: 10.17261/Pressacademia.2018.861 %U 10.17261/Pressacademia.2018.861
ISNAD Vuran, Bengu , Adiloglu, Burcu . "THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPRICAL STUDY FROM TURKEY". PressAcademia Procedia 7 / 1 (September 2018): 93-96. https://doi.org/10.17261/Pressacademia.2018.861