ScholarLens Back to search
2013•Asian Journal of Research in Business Economics and ManagementRequires access

Does Working Capital Management Make a Difference

Fatemeh Baghiyan, Hossein Etemadi

Open publisher page 1 citations

Abstract

Since the level of fixed investment is costly for companies, they always search for ways to maintain it; however, financing constraints prevent the realization of this goal. In this article, a panel of over 804 stock firm-years over the period 2005–2011 was used to study the linkages between investment in fixed and working capital and financing constraints. To this end we have analyzed the relation between investment, cash flow, working capital, tangible fixed assets and fixed investment (Etemadi & Baghiyan, 2013). The results obtained indicate that an active management of working capital may help firms alleviate the effects of financing constraints on fixed investment.

About this research paper

What this paper is about

Since the level of fixed investment is costly for companies, they always search for ways to maintain it; however, financing constraints prevent the realization of this goal. In this article, a panel of over 804 stock firm-years over the period 2005–2011 was used to study the linkages between investment in fixed and working capital and financing constraints. To this end we have analyzed the relation between investment, cash flow, working capital, tangible fixed assets and fixed investment (Etemadi & Baghiyan, 2013). The results obtained indicate that an active management of working capital may help firms alleviate the effects of financing constraints on fixed investment.

Why it matters

OpenAlex reports 1 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Since the level of fixed investment is costly for companies, they always search for ways to maintain it; however, financing constraints prevent the realization of this goal. In this article, a panel of over 804 stock firm-years over the period 2005–2011 was used to study the linkages between investment in fixed and working capital and financing constraints. To this end we have analyzed the relation between investment, cash flow, working capital, tangible fixed assets and fixed investment (Etemadi & Baghiyan, 2013). The results obtained indicate that an active management of working capital may help firms alleviate the effects of financing constraints on fixed investment.

Key concepts: Working capital, Fixed asset, Fixed investment, Fixed capital, Cash flow, Finance, Investment (military), Fixed effects model

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
Does Working Capital Management Make a Difference — Research Paper | ScholarLens