Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA‑Malmquist Technology

In this study, we analyze the efficiency of working capital management (WCME) for Gulf companies before and during the coronavirus crisis, then explore the influence of the coronavirus crisis on WCME. This study uses several techniques to achieve its goals, including the Malmquist index (MI), data e...

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Main Author: Mohamed Habib, Ahmed (author)
Other Authors: Mourad, Nahia (author)
Published: 2022
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Online Access:https://bspace.buid.ac.ae/handle/1234/3092
https://doi.org/10.1007/s43069-022-00155-7.
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author Mohamed Habib, Ahmed
author2 Mourad, Nahia
author2_role author
author_facet Mohamed Habib, Ahmed
Mourad, Nahia
author_role author
dc.creator.none.fl_str_mv Mohamed Habib, Ahmed
Mourad, Nahia
dc.date.none.fl_str_mv 2022-07-22
2025-05-21T17:00:58Z
2025-05-21T17:00:58Z
dc.identifier.none.fl_str_mv Habib, A.M. and Mourad, N. (2022) “Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA-Malmquist Technology,” Operations Research Forum, 3(3).
2662-2556
https://bspace.buid.ac.ae/handle/1234/3092
https://doi.org/10.1007/s43069-022-00155-7.
dc.language.none.fl_str_mv en_US
dc.publisher.none.fl_str_mv Springer
dc.relation.none.fl_str_mv Operations Research Forumv3 n3 (20220722)
dc.subject.none.fl_str_mv Working capital management · Data envelopment analysis · Malmquist index · Optimization · Coronavirus
dc.title.none.fl_str_mv Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA‑Malmquist Technology
dc.type.none.fl_str_mv Article
description In this study, we analyze the efficiency of working capital management (WCME) for Gulf companies before and during the coronavirus crisis, then explore the influence of the coronavirus crisis on WCME. This study uses several techniques to achieve its goals, including the Malmquist index (MI), data envelopment analysis (DEA), and Tobit regression. The results demonstrate that most firms (approximately 84%) adopt a conservative strategy for their WCM. The WCME results revealed a statisti cal difference in the technological and pure efficiency scores for companies before and during the coronavirus crisis, while the results revealed no statistical difference in the technical, scale, and total factor productivity scores. Tobit’s results show that the coronavirus crisis had no significant influence on companies’ WCM perfor mance. Finally, our results indicate that firms that are efficient in terms of WCM have higher sales returns and net income. The findings of this study have impor tant implications for stakeholders to increase their awareness of companies’ WCM performance before and during a crisis. In addition, the results could have implica tions for trading strategies as investors and financiers seek to invest in companies with good WCM. The implications of WCM performance on social interests would cause decision-makers to use the best strategies and procedures to enhance WCM activities to improve their investments and image in the community in which it oper ates. We advance a novel contribution to the literature by analyzing and apprais ing the WCME for companies before and during the coronavirus crisis using a new approach based on DEA-Malmquist technology and then examining whether the coronavirus crisis has affected the WCME.
id budr_0d9dcdfdcfcc0c1afdadf5bd06b10b20
identifier_str_mv Habib, A.M. and Mourad, N. (2022) “Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA-Malmquist Technology,” Operations Research Forum, 3(3).
2662-2556
language_invalid_str_mv en_US
network_acronym_str budr
network_name_str The British University in Dubai repository
oai_identifier_str oai:bspace.buid.ac.ae:1234/3092
publishDate 2022
publisher.none.fl_str_mv Springer
repository.mail.fl_str_mv
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spelling Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA‑Malmquist TechnologyMohamed Habib, AhmedMourad, NahiaWorking capital management · Data envelopment analysis · Malmquist index · Optimization · CoronavirusIn this study, we analyze the efficiency of working capital management (WCME) for Gulf companies before and during the coronavirus crisis, then explore the influence of the coronavirus crisis on WCME. This study uses several techniques to achieve its goals, including the Malmquist index (MI), data envelopment analysis (DEA), and Tobit regression. The results demonstrate that most firms (approximately 84%) adopt a conservative strategy for their WCM. The WCME results revealed a statisti cal difference in the technological and pure efficiency scores for companies before and during the coronavirus crisis, while the results revealed no statistical difference in the technical, scale, and total factor productivity scores. Tobit’s results show that the coronavirus crisis had no significant influence on companies’ WCM perfor mance. Finally, our results indicate that firms that are efficient in terms of WCM have higher sales returns and net income. The findings of this study have impor tant implications for stakeholders to increase their awareness of companies’ WCM performance before and during a crisis. In addition, the results could have implica tions for trading strategies as investors and financiers seek to invest in companies with good WCM. The implications of WCM performance on social interests would cause decision-makers to use the best strategies and procedures to enhance WCM activities to improve their investments and image in the community in which it oper ates. We advance a novel contribution to the literature by analyzing and apprais ing the WCME for companies before and during the coronavirus crisis using a new approach based on DEA-Malmquist technology and then examining whether the coronavirus crisis has affected the WCME.Springer2025-05-21T17:00:58Z2025-05-21T17:00:58Z2022-07-22ArticleHabib, A.M. and Mourad, N. (2022) “Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA-Malmquist Technology,” Operations Research Forum, 3(3).2662-2556https://bspace.buid.ac.ae/handle/1234/3092https://doi.org/10.1007/s43069-022-00155-7.en_USOperations Research Forumv3 n3 (20220722)oai:bspace.buid.ac.ae:1234/30922026-01-29T16:47:44Z
spellingShingle Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA‑Malmquist Technology
Mohamed Habib, Ahmed
Working capital management · Data envelopment analysis · Malmquist index · Optimization · Coronavirus
title Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA‑Malmquist Technology
title_full Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA‑Malmquist Technology
title_fullStr Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA‑Malmquist Technology
title_full_unstemmed Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA‑Malmquist Technology
title_short Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA‑Malmquist Technology
title_sort Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA‑Malmquist Technology
topic Working capital management · Data envelopment analysis · Malmquist index · Optimization · Coronavirus
url https://bspace.buid.ac.ae/handle/1234/3092
https://doi.org/10.1007/s43069-022-00155-7.