Working capital management, profitability and risk – analyse of companies listed on the Warsaw stock exchange
Working capital management, profitability and risk – analyse of companies listed on the Warsaw stock exchange
Author(s): Monika BolekSubject(s): National Economy, Business Economy / Management, Financial Markets, Accounting - Business Administration
Published by: Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
Keywords: working capital; profitability; risk;
Summary/Abstract: This paper presents the problem of working capital management, profitability and risk represented by working capital strategy. According to the theory the more working capital is engaged in the company resulting in higher liquidity the lower the profitability and risk connected to the liquidity. On the other hand we can expect that the lower the working capital level and hence the liquidity the higher the profitability and risk., The author decided to test companies listed on the Warsaw Stock Exchange to see if balance sheet structure and risk connected to working capital strategy were related to the return measured by ROA and ROE in non-financial companies in the period 1997–2007. The results presented below show a lack of correlation between working capital strategies (and the related risk levels) and the returns on assets and equity.
Journal: Financial Internet Quarterly
- Issue Year: 9/2013
- Issue No: 3
- Page Range: 1-10
- Page Count: 10
- Language: English
