Working Capital Management - corporate profitability relationship
A literature review
Bibliographic Data
| ID | 11634216 |
|---|---|
| Authors | Daniela Alcaraz Ochoa (corresponding author), Daniela Alcaraz-Ochoa (0000-0001-8760-4752), Ezequiel Avilés‐ochoa (0000-0002-1289-9231, Universidad Autónoma de Occidente), Ernesto León-Castro (Universidad Católica de la Santísima Concepción), Ernesto León‐Castro (0000-0002-0087-2226) |
| Year | 2026 |
| Volume | 36 |
| Issue | 99 |
| Publication date | 2026-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Innovar (JOURNAL) |
| Journal identifiers | ISSN: 0121-5051 • E-ISSN: 2248-6968 |
| Publisher | Universidad Nacional de Colombia (PUBLISHER • CO) |
| DOI | 10.15446/innovar.v36n99.107695 |
| OpenAlex | W7125699711 |
| Language | EN |
| References cited | 84 |
Working Capital Management (WCM) refers to the day-to-day financial decisions that provide the necessary liquidity for the operative activities of companies. A crescent interest for researchers in the WCM literature is motivated by its expected significant effect on corporate profitability; however, empirical evidence often diverges regards analysis strategies and findings reported. This document aims to identify, report and analyze publications regarding the WCM - profitability relationship. Eighty-one documents are selected from Scopus and Web of Science databases employing a boolean search for articles from 2017 to 2022 in English that disseminate its utilization by open access. An initial upward trend in publication volume is identified, primarily from European, Asian, and North-American journals. The most frequent proxies for dependent and independent variables are Return on Assets and Cash Conversion Cycle, respectively, while company size is the most used control variable. Panel data analysis with fixed-effects models is recurrent, having a negative and significant relationship between variables as the most frequent result. This literature review is limited to the precise criterion for eligibility and databases consulted. Future research could enrich the WCM literature by developing empirical evidence in unexplored countries and industries, considering the proxies and analysis techniques identified in this literature review to have comparable results
Cash · Control (management · Empirical evidence · Empirical research · Market liquidity · Panel data · Profitability index · Scopus · Working capital · Financial Distress and Bankruptcy Prediction · Financial Reporting and Valuation Research · Working Capital and Financial Performance
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| Citation velocity | historical |
|---|---|
| Highly cited | No |