IDEAS home Printed from https://ideas.repec.org/a/acc/malfin/v34y2019i111p11-32.html
   My bibliography  Save this article

Impact of Working Capital Components On Firm’s Profitability: The Case of Iron, Steel Metal Industry Sector in Borsa Istanbul

Author

Listed:
  • Sibel Yılmaz Türkmen

    (Marmara University)

  • Yakup Söylemez

    (Bulent Ecevit University)

Abstract

This study aims to examine the effects of working capital management on the firm’s profitability. We used data from firms operating in Iron and Steel Industry listed on Borsa Istanbul for the period 2010-2017. In this study, positive and significant relationships were determined between asset profitability and acid test ratio, current asset/ total asset ratio and working capital turnover rate. There is a significant and negative relationship between turnover rate and return on assets. On the other hand, no relation was found between asset profitability and cash ratio and stock turnover rate. These findings imply that finance managers can increase the profitability of firms by managing their working capital in an efficient way.

Suggested Citation

  • Sibel Yılmaz Türkmen & Yakup Söylemez, 2019. "Impact of Working Capital Components On Firm’s Profitability: The Case of Iron, Steel Metal Industry Sector in Borsa Istanbul," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 34(111), pages 11-32, April.
    • Handle: RePEc:acc:malfin:v:34:y:2019:i:111:p:11-32
    DOI: https://doi.org/10.33203/mfy.431831
    as

    Download full text from publisher

    File URL: https://dergipark.org.tr/tr/download/article-file/708836
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.33203/mfy.431831?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Working Capital Management; Profitability; Iron and Steel Industry; Multiple Regression Analysis;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

    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:acc:malfin:v:34:y:2019:i:111:p:11-32. 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: Süleyman Kale (email available below). General contact details of provider: https://dergipark.org.tr/en/pub/mfy .

    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.