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Cash Conversion Cycle and Firm’s Performance of Japanese FirmsHaitham NobaneeAbu Dhabi University Modar Abdullatifaffiliation not provided to SSRN Maryam Al HajjarAbu Dhabi University July 19, 2010 Abstract: In this paper we investigate the relation between the firm’s cash conversion cycle and its profitability. This relationship is examined using dynamic panel data analysis for the full sample, by industry and by size. Using a sample of 34771 firm years covering the period 1990-2004, we find a strong negative relation between the length of the firm’s cash conversion cycle and its profitability in all our study samples except for consumer goods companies and services companies.
Keywords: Working Capital Management, Cash Conversion Cycle, Return on Investment JEL Classification: G30 working papers seriesDate posted: July 19, 2010 ; Last revised: August 11, 2012Suggested Citation |
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