The strategies of net working capital management and their impact on the profitability of Polish it and electromechanical stock companies
Journal Title: Studia Prawno-Ekonomiczne - Year 2018, Vol 109, Issue
Abstract
The aim of this study is to explore the character and strength of the correlation between the established strategy of net working capital management and the profitability of particular stock companies belonging to different sectors. The theoretical-empirical study in the paper tests the general research hypothesis, which stipulates that sectoral differences can be observed in the impact of the strategy of net working capital management on the profitability of enterprises. It may be assumed that the growth in profitability of electromechanical stock companies, as opposed to IT stock companies, is most often connected with retaining the proper financial liquidity. The study comprises selected companies from the IT and electromechanical sectors which were listed on the Warsaw Stock Exchange (qualified as of 01.10.2017). The diagnosis is based on annual financial reports dated 2007–2016. The research shows only positive and, more importantly, statistically significant relationships between values of the net working capital and liquidity ratios, and returns on sales, total assets, and equity. Moreover, in the analyzed electromechanical companies there existed stronger positive correlations between the examined variables.
Authors and Affiliations
Magdalena Lesiak, Artur Sajnóg
Keywords
Related Articles
- EP ID EP616199
- DOI 10.26485/SPE/2018/109/15
- Views 65
- Downloads 0
Zakres i dynamika licencjonowania nowych rozwiązań technicznych w wybranych krajach europejskich / Scope and Dynamics of the Technology Licensing in Selected European Countries
The aim of this paper is to present the results of the licensing industrial property research as one of the forms of commercialization in the selected European countries. To achieve this purpose, the collection of patent...
Skuteczność umów o wymianie informacji podatkowych w relacjach z państwami stosującymi szkodliwą konkurencję podatkową
Artykuł podejmuje tematykę umów o wymianie informacji podatkowych (TIEA) zawieranych przez Rzeczpospolitą Polską z tzw. krajami stosującymi szkodliwą konkurencję podatkową. Ze względu na fakt, iż porozumienia TIEA są rel...
Redukcja regulacji czasu pracy jako kierunek zmian w sferze instytucjonalnej rynku pracy
The paper aims to examine the extent of reduction in current working time regulations across the world as a potential source of increasing the elasticity of the labor market. It provides the arguments supporting the thes...
Zestrzelenie samolotu a zasada zwierzchnictwa powietrznego
Hereby article aims at juridical analysis of a phenomenon that has constituted a threat to civil aviation since years – shooting down aircraft. The phenomenon is connected with the principle of sovereignty in the airspac...
Failure to ensure legal certainty as a basis for damage claims. A legal and comparative analysis
The article discusses the issue of a relationship between the failure to ensure legal certainty related to reasonable and legitimate expectations and possible claims for damages lodged by private entities against the hos...