Working capital management and performance of listed SMEs
Working capital management and performance of listed SMEs
This paper reports the results of the effect of working capital management (WCM) on the performance of listed small and medium enterprises (SMEs). The study also examines whether the effect of WCM on performance differs between ‘small’ and ‘medium’ firms. The paper employs panel data regression analysis on a sample of 141 Alternative Investment Market listed SMEs for an eight-year period (2007–2014). The results show that for all SMEs, WCM components (inventory holding period, accounts receivable period, and accounts payable period) have concave relationships with performance. However, when the SMEs are split into ‘small’ and ‘medium’ firms, the results suggest that WCM is relatively more important to the performance of ‘small’ firms than ‘medium’ firms. Overall, the results imply that WCM components affect performance of the listed SMEs. The findings have important implication for policy-makers who prescribe financial assistance mechanisms for SMEs.
AIM, SMEs, WCM, medium firms, performance, small firms
557-578
Afrifa, Godfred Adjapong
956c7235-c03d-46cf-83d2-f08392aa3ba2
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Tingbani, Ishmael
e6b2741a-d792-4adf-84cc-a2f64d5545ca
1 January 2016
Afrifa, Godfred Adjapong
956c7235-c03d-46cf-83d2-f08392aa3ba2
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Tingbani, Ishmael
e6b2741a-d792-4adf-84cc-a2f64d5545ca
Afrifa, Godfred Adjapong, Tauringana, Venancio and Tingbani, Ishmael
(2016)
Working capital management and performance of listed SMEs.
Journal of Small Business & Entrepreneurship, 27 (6), .
(doi:10.1080/08276331.2015.1114351).
Abstract
This paper reports the results of the effect of working capital management (WCM) on the performance of listed small and medium enterprises (SMEs). The study also examines whether the effect of WCM on performance differs between ‘small’ and ‘medium’ firms. The paper employs panel data regression analysis on a sample of 141 Alternative Investment Market listed SMEs for an eight-year period (2007–2014). The results show that for all SMEs, WCM components (inventory holding period, accounts receivable period, and accounts payable period) have concave relationships with performance. However, when the SMEs are split into ‘small’ and ‘medium’ firms, the results suggest that WCM is relatively more important to the performance of ‘small’ firms than ‘medium’ firms. Overall, the results imply that WCM components affect performance of the listed SMEs. The findings have important implication for policy-makers who prescribe financial assistance mechanisms for SMEs.
This record has no associated files available for download.
More information
Accepted/In Press date: 13 October 2015
e-pub ahead of print date: 22 December 2015
Published date: 1 January 2016
Keywords:
AIM, SMEs, WCM, medium firms, performance, small firms
Organisations:
Centre of Excellence for International Banking, Finance & Accounting
Identifiers
Local EPrints ID: 405331
URI: http://eprints.soton.ac.uk/id/eprint/405331
ISSN: 0827-6331
PURE UUID: 96d2a4ef-2baa-49f6-a0f0-ae2490ac9ee3
Catalogue record
Date deposited: 02 Feb 2017 16:39
Last modified: 16 Mar 2024 04:43
Export record
Altmetrics
Contributors
Author:
Godfred Adjapong Afrifa
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics
