Working capital management and corporate profitability of Japanese firms

This study examines the relationship between working capital management, profitability, firm size and industry type for firms in Japan. The study sample consists of 2123 Japanese non-financial firms listed at the Tokyo Stock Exchange for the period 1990-2004. We observe that the cash conversion cycl...

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Bibliographic Details
Main Author: Nobanee, Haitham (author)
Other Authors: Haddad, Ayman (author)
Published: 2014
Online Access:https://dspace.auk.edu.kw/handle/11675/7639
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Summary:This study examines the relationship between working capital management, profitability, firm size and industry type for firms in Japan. The study sample consists of 2123 Japanese non-financial firms listed at the Tokyo Stock Exchange for the period 1990-2004. We observe that the cash conversion cycle and return on investment relationships are commonly significant and negative, suggesting that the shortening of the cash conversion cycle enhances the profitability of Japanese firms.