On the role of institutional factors in shaping working capital management policies: Empirical evidence from European listed firms

Anton, Sorin Gabriel; Nucu, Anca Elena

doi:10.1016/j.ecosys.2022.100976

Cited by 8 publications

(9 citation statements)

References 69 publications

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“…Second, as shown in public ( 13) and ( 14), each secondary variable is distributed from ½0, 1; that is, the value of the secondary variable can be taken as 0 or 1. Third, calculate the primary index value according to formula (15). The primary index value is the ratio of the sum of the scores of secondary variables to the number of secondary variables, that is, the arithmetic mean.…”

Section: Pmc Index Calculation Method According To Ruizmentioning

confidence: 99%

“…They have lived in the border areas for a long time and have their own characteristics in history, culture, and so on. Most of the population of ethnic minorities in China is distributed in the border areas [15]. The natural environment, ecological environment, and economic environment in the border areas are relatively fragile.…”

Section: The Definition Of Minority College Students In Bordermentioning

confidence: 99%

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Quantitative Evaluation and Empirical Analysis of Educational Policies for Ethnic Minorities in Border Areas Based on the PMC Index Model

Zhang

Yang

2022

Wireless Communications and Mobile Computing

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China is a multiethnic country, and the border areas are the gathering places of ethnic minorities. Strengthening the ethnic unity education in the border areas is an important measure to maintain the social stability and national security in the border areas of China. Colleges and universities in the border areas are the cradle of cultivating outstanding ethnic minority cadres, and colleges and universities in the border areas shoulder an important historical mission. In recent years, many domestic experts and scholars began to try to use the PMC index model for policy evaluation. Chinese scholars also have a deeper understanding of the standards of policy evaluation and put forward policy evaluation standards that are more in line with the actual needs of China’s public policy evaluation research. This paper takes the education policy text of the border ethnic minorities as the research object, takes the policy evaluation as the research perspective, constructs the transformation policy text evaluation model according to Ruiz Estrada’s PMC index model construction method, defines the calculation method and rating method, draws the PMC surface of each sample, and makes a comparative analysis of the PMC index. According to the comparative analysis results of PMC index and the scanning results of policy text, this paper puts forward three optimization strategies for the education policy of border ethnic minorities.

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Section: Pmc Index Calculation Method According To Ruizmentioning

confidence: 99%

Section: The Definition Of Minority College Students In Bordermentioning

confidence: 99%

Quantitative Evaluation and Empirical Analysis of Educational Policies for Ethnic Minorities in Border Areas Based on the PMC Index Model

Zhang

Yang

2022

Wireless Communications and Mobile Computing

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“…The interaction between DEF i, t and WCM i, t is expected to capture the moderating effect of a defending strategy on the relationship between WCM and profitability. Finally, following prior literature (Jose et al , 1996; Deloof, 2003; Juan Garcia-Teruel and Martinez-Solano, 2007; Hill et al , 2010; Aktas et al , 2015; Boțoc and Anton, 2017; Anton and Nucu, 2022), the regression model of equation (1) includes several control variables, such as the lagged value of ROA (ROA t −1 ), the sales growth (SG i, t ), the size (SIZE i, t ), the current ratio (CR i, t ), the leverage (LEV i, t ) and the ratio of financial assets to total assets (FA i,t /TA i, t ). Appendix 1 provides analytical descriptions of these variables.…”

Section: Methodsmentioning

confidence: 99%

“…In addition, most studies assume a linear relationship between the working capital level and profitability. However, several studies (Baños-Caballero et al , 2012; Pais and Gama, 2015; Aktas et al , 2015; Mun and Jang, 2015; Afrifa and Padachi, 2016; Boțoc and Anton, 2017; Anton and Nucu, 2022) have documented a nonmonotonic (concave) relationship between the level of working capital and profitability.…”

Section: Introductionmentioning

confidence: 99%

The moderating effects of strategy on the relation of working capital management with profitability

Vlismas

2023

JAOC

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Purpose This study aims to explore the moderating effects of strategy on the relationship between working capital management (WCM) and profitability. Design/methodology/approach A data sample of 72,444 firm-year observations of US-listed firms during 2000–2020 was used. The research hypotheses were tested using a panel regression analysis and an appropriate research instrument that signifies a firm’s strategic positioning. Findings The prospecting (defending) strategy has a decreasing (increasing) moderating effect on the relationship between WCM and profitability. The empirical findings are not affected by the level of earnings management, the presence of motives to meet earnings targets or the intensity of unreported intangible assets. Additionally, the reported empirical results remain robust within the context of propensity score matching regression analysis, in the presence of nonlinear effects of WCM on profitability, when alternative measures of WCM are used, and between firms with an increase or decrease in future profitability or different levels of efficiency on net WCM investments. Research limitations/implications This study may stimulate future research exploring the moderating effects of various variables on the relationship between WCM and operating performance. Practical implications The findings highlight the importance of strategy for improving the performance evaluation of WCM policies and the prediction accuracy of the consequences of a strategy on short-term operating performance. Originality/value Prior empirical research has documented either a negative or positive relationship between WCM and profitability, which implies the presence of moderating effects of various factors. This study provides empirical evidence of the moderating effects of strategy on the relationship between WCM and profitability.

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“…Several past studies have examined the determinants of WCP such as ownership structure (Dary and James, 2019;Mortal et al, 2020), industry (Grau and Reig, 2018) and firm size (Kasiran et al, 2016). Anton and Nucu (2022) have studied accounting as well as governance factors affecting liquidity of European listed firms. They have concluded that strong institutional framework follow aggressive WCP.…”

Section: Empirical Literaturementioning

confidence: 99%

Working capital policy of newly incorporated firms

Desai,

Mehta

2023

AJAR

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PurposeThe present study examines the initial working capital policy (WCP) and its evolution for newly established manufacturing firms.Design/methodology/approachUsing panel data of 162 firms over a period of 10 years, the study analyses the persistence-cum-convergence in WCP over the subsequent years through descriptive analysis and difference of means test. Further, the prevalence of ß – convergence, and σ-convergence has been examined using standard least squares regression, dynamic panel analysis and the Wald test.FindingsThe results indicate that sample firms continue to follow the initial WCP in the subsequent years with a gradual convergence in the WCP. Alternatively, the firms with aggressive (conservative) WCP at the time of incorporation will continue following it. Further, the firms with aggressive initial WCP have witnessed higher growth than those with conservative initial WCP.Research limitations/implicationsFindings will assist managers and practitioners to understand the dynamics of WCP over the life cycle of the firm and select appropriate WCP as certain policies lead to certain growth paths.Originality/valueThough working capital management has been recognized as a critical managerial decision, limited research is available on its evolution, especially for newly established manufacturing companies in an emerging economy. Current research attempts to fill this gap and provide valuable insights for the effective management of liquidity.

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On the role of institutional factors in shaping working capital management policies: Empirical evidence from European listed firms

Cited by 8 publications

References 69 publications

Quantitative Evaluation and Empirical Analysis of Educational Policies for Ethnic Minorities in Border Areas Based on the PMC Index Model

Quantitative Evaluation and Empirical Analysis of Educational Policies for Ethnic Minorities in Border Areas Based on the PMC Index Model

The moderating effects of strategy on the relation of working capital management with profitability

Working capital policy of newly incorporated firms

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