Do impact of cash flows and working capital ratios on performance of listed firms during the crisis? The cases of EU-28 and Western European countries

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dc.authorid, Ali Ihsan/0000-0002-6441-8196
dc.authoridMEMIS KARATAS, AYYUCE/0000-0002-3429-5666
dc.contributor.authorAkgun, Ali Ihsan
dc.contributor.authorKaratas, Ayyuce Memis
dc.date.accessioned2024-11-07T13:31:51Z
dc.date.available2024-11-07T13:31:51Z
dc.date.issued2023
dc.departmentNiğde Ömer Halisdemir Üniversitesi
dc.description.abstractPurposeThis study examines investigating the relationship between cash flows, working capital ratios and firm performance during the global financial crisis.Design/methodology/approachTo examine the relationship between cash flow, working capital ratios and firm performance for EU-28 or Western European Countries (Norway, Turkey and Switzerland) listed firms, both panel and ordinary least squares (OLS) regression model are used to analyze the data obtained from sample.FindingsThe study empirical findings suggest that global financial crisis has negative effect on firm performance for all sample. In addition, our interaction term result shows that cash flows variables such as cash holding level (CHL) x Crisis, cash interactive effect (CIE) x Crisis and gross working capital ratio (GWC) x Crisis not contributed to firm performance for EU-28 listed firms. However, the authors find that net working capital ratio (NWC) x Crisis have statistically significant and positive effects on firm performance with return on assets (ROA).Practical implicationsThe findings of the study provide evidence for managers that listed firms have reduced working capital expenditures to increase cash holdings level during the financial crisis. The authors find that cash flow variables with CHL have positive effect on firm performance with return on equity (ROE) in Western European Countries and these results are consistent with Opler et al. (1999)'s empirical results, while CIE have a negative impact on firm performance such as ROE and earnings before interest tax margin (EBITM).Originality/valueGlobal financial crisis emphasizes the importance of working capital and liquidity that suggests an efficient cash holdings policy in response to the uncertainty following the crisis.
dc.identifier.doi10.1108/JEAS-01-2023-0018
dc.identifier.issn1026-4116
dc.identifier.issn2054-6246
dc.identifier.scopus2-s2.0-85197440799
dc.identifier.scopusqualityN/A
dc.identifier.urihttps://doi.org/10.1108/JEAS-01-2023-0018
dc.identifier.urihttps://hdl.handle.net/11480/15062
dc.identifier.wosWOS:000989835600001
dc.identifier.wosqualityN/A
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.language.isoen
dc.publisherEmerald Group Publishing Ltd
dc.relation.ispartofJournal of Economic and Administrative Sciences
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/closedAccess
dc.snmzKA_20241106
dc.subjectCash flow
dc.subjectWorking capital ratios
dc.subjectFirm performance
dc.subjectFinancial crisis
dc.subjectEuropean countries
dc.titleDo impact of cash flows and working capital ratios on performance of listed firms during the crisis? The cases of EU-28 and Western European countries
dc.typeArticle

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