Working Capital Management in SMEs

17 Pages Posted: 24 Aug 2010

See all articles by Sonia Baños-Caballero

Sonia Baños-Caballero

affiliation not provided to SSRN

Pedro J. García-Teruel

University of Murcia

Pedro Martínez-Solano

University of Murcia

Abstract

This paper analyses the determinants of Cash Conversion Cycle (CCC) for small- and medium-sized firms. It has been found that these firms have a target CCC length to which they attempt to converge, and that they try to adjust to their target quickly. The results also show that it is longer for older firms and companies with greater cash flows. In contrast, firms with more growth opportunities, and firms with higher leverage, investment in fixed assets and return on assets have a more aggressive working capital policy.

Suggested Citation

Baños-Caballero, Sonia and García-Teruel, Pedro J. and Martínez-Solano, Pedro, Working Capital Management in SMEs. Accounting & Finance, Vol. 50, No. 3, pp. 511-527, September 2010, Available at SSRN: https://ssrn.com/abstract=1661362 or http://dx.doi.org/10.1111/j.1467-629X.2009.00331.x

Sonia Baños-Caballero (Contact Author)

affiliation not provided to SSRN

No Address Available

Pedro J. García-Teruel

University of Murcia ( email )

Department of Management and Finance
Murcia, 30100
Spain
34 868887828 (Phone)
34 868887537 (Fax)

HOME PAGE: http://webs.um.es/pjteruel/miwiki/doku.php

Pedro Martínez-Solano

University of Murcia ( email )

Dpt. Management and Finance
Murcia, Murcia 30100
Spain
34 868 883 747 (Phone)
34 868 887 537 (Fax)

HOME PAGE: http://webs.um.es/pmsolano

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