Working capital management and performance of listed SMEs
Afrifa, G., Tauringana, V. and Tingbani, I. 2015. Working capital management and performance of listed SMEs. Journal of Small Business & Entrepreneurship . https://doi.org/10.1080/08276331.2015.1114351
|Authors||Afrifa, G., Tauringana, V. and Tingbani, I.|
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 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.
|Keywords||SMEs; small firms; medium firms; WCM; performance; AIM|
|Journal||Journal of Small Business & Entrepreneurship |
|Publisher||Taylor & Francis|
|Digital Object Identifier (DOI)||https://doi.org/10.1080/08276331.2015.1114351|
|Online||22 Dec 2015|
|Publication process dates|
|Deposited||28 Nov 2017|
|Accepted||13 Oct 2015|
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