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50002

Effect of Corporate Governance on Working Capital Management and Financial Performance

Article

Last updated: 22 Jan 2023

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Tags

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Abstract

This research investigates the impact of corporate governance monitoring practices on the efficiency of working capital management and on improving the corporate financial performance. This research is based on a sample of 57 listed manufacturing firms in the Egyptian Stock Exchange for the period 2006-2010. Results were analyzed by using the multiple regression and Pearson correlation techniques. The result indicates that working capital management efficiency is critical for maintaining balance between liquidity and profitability. Findings show that return on assets and current ratio is negatively correlated with the Cash Conversion Cycle (CCC). This means that by shortening CCC, firms' profitability and liquidity improves. The results implies that firms can create value for their shareholders by keeping the CCC to minimum and through effective working capital management managers can promotes increase in firm profitability and liquidity. In addition, the results revealed that there is a significant impact of corporate governance practices on the efficiency of working capital management.

DOI

10.21608/atasu.2015.50002

Keywords

تقويم الأداء, رأس المال, حوکمة الشرکات- النظم المحاسبية, التنمية الاقتصادية

Authors

First Name

Nevine Sobhy

Last Name

Abdel Megeid

MiddleName

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Affiliation

Arab Academy for Science, Technology and Maritime Transport College of Management and Technology Abstract

Email

nevinesobhy2@hotmail.com

City

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Orcid

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Volume

19

Article Issue

1

Related Issue

7640

Issue Date

2015-04-01

Receive Date

2019-09-27

Publish Date

2015-04-01

Page Start

35

Page End

71

Print ISSN

2356-8402

Online ISSN

2682-3128

Link

https://atasu.journals.ekb.eg/article_50002.html

Detail API

https://atasu.journals.ekb.eg/service?article_code=50002

Order

19

Type

المقالة الأصلية

Type Code

907

Publication Type

Journal

Publication Title

الفکر المحاسبى

Publication Link

https://atasu.journals.ekb.eg/

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Details

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Article

Created At

22 Jan 2023