Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147072
Authors: 
Bolek, Monika
Year of Publication: 
2013
Citation: 
[Journal:] e-Finanse: Financial Internet Quarterly [ISSN:] 1734-039X [Volume:] 9 [Year:] 2013 [Issue:] 3 [Pages:] 1-10
Abstract: 
This paper presents the problem of working capital management, profitability and risk represented by working capital strategy. According to the theory the more working capital is engaged in the company resulting in higher liquidity the lower the profitability and risk connected to the liquidity. On the other hand we can expect that the lower the working capital level and hence the liquidity the higher the profitability and risk., The author decided to test companies listed on the Warsaw Stock Exchange to see if balance sheet structure and risk connected to working capital strategy were related to the return measured by ROA and ROE in non-financial companies in the period 1997-2007. The results presented below show a lack of correlation between working capital strategies (and the related risk levels) and the returns on assets and equity.
Subjects: 
working capital
profitability
risk
JEL: 
G31
M21
Document Type: 
Article

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