文章基本信息

标题：Working Capital Management and SMEs Profitability in Emerging Economies: The Ghanaian Case
本地全文：下载
作者：Abudu Braimah ; Yinping Mu ; Isaac Quaye 等
期刊名称：SAGE Open
印刷版ISSN：2158-2440
电子版ISSN：2158-2440
出版年度：2021
卷号：11
DOI：10.1177/2158244021989317
语种：English
出版社：SAGE Publications
摘要：This study empirically examines the impact of working capital management (WCM) on the profitability of Small and Medium Scale Enterprises (SMEs) in the context of a developing economy, Ghana. We analyzed data on 366 SMEs over a 10-year period, spanning 2007 to 2016. Generalized method of moment (GMM) estimation was employed. The results reveal a positive relationship between trade payable period and profitability. The inventory conversion period and cash conversion cycle show a negative association with profitability. The results show an inverted U-shaped relationship between trade receivables collection period and corporate profitability, an indication of an optimal trade receivables collection period that maximizes profitability. Further check suggests a deviation from the optimal trade receivables collection period significantly and negatively affects corporate profitability. The study reveals the need for firms to ensure efficient management of working capital to maximize profitability.