IDEAS home Printed from https://ideas.repec.org/a/abg/anprac/v16y2012i4948.html
   My bibliography  Save this article

Working capital management: a comparative study between the practices of Brazilian and UK firms

Author

Listed:
  • Claudinê Jordão de Carvalho
  • Rafael Felipe Schiozer

Abstract

This study investigates the determinants of the ways to conduct working capital practices in micro and small enterprises (MSEs), using the foundations of firm life cycle, resource based view, trade credit, agency and transaction cost theories. The data obtained from a survey with 447 MSEs from the states of Minas Gerais and São Paulo were analyzed using multivariate techniques, and four styles of working capital management were identified. These styles may be explained by firm characteristics such as age, size and profitability. The results were compared to the ones obtained in a similar study with UK firms (Howorth & Westhead, 2003), and the evidence shows important differences: (a) Brazilian firms revise most working capital management routines more frequently than their counterparts in the UK; (b) Brazilian MSEs supply less trade credit than their British counterparts. These differences may be explained, at least in part, by the higher cost of financing faced by Brazilian firms compared to UK firms.

Suggested Citation

  • Claudinê Jordão de Carvalho & Rafael Felipe Schiozer, 2012. "Working capital management: a comparative study between the practices of Brazilian and UK firms," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 16(4), pages 518-543.
    • Handle: RePEc:abg:anprac:v:16:y:2012:i:4:948
    as

    Download full text from publisher

    File URL: https://rac.anpad.org.br/index.php/rac/article/view/948/945
    Download Restriction: no
    File URL: https://rac.anpad.org.br/index.php/rac/article/download/948/945
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abg:anprac:v:16:y:2012:i:4:948. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Information Technology of ANPAD (email available below). General contact details of provider: http://anpad.org.br .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.