Have a personal or library account? Click to login
Investigating the Symmetric Effects of Working Capital on Profitability in Turkish Banking: An ARDL Empirical Analysis Cover

Investigating the Symmetric Effects of Working Capital on Profitability in Turkish Banking: An ARDL Empirical Analysis

Open Access
|Jan 2024

References

  1. Akhtar, M., Yusheng, K., Haris, M., Ain, Q. U., Javaid, H. M. (2021), Impact of financial leverage on sustainable growth, market performance, and profitability, Economic Change and Restructuring, 1-38.
  2. Aktas, N., Croci, E., Petmezas, D. (2015), Is working capital management value-enhancing? Evidence from firm performance and investments, Journal of Corporate Finance, 30, 98-113.
  3. Al-Eitan, G. N., Khanji, I. M., Saraireh, S. A. (2023), Trade Credit Management and Profitability of Jordanian Manufacturing Firms, Risks, 11(1), 16-26.
  4. Al-Shubiri, F. N., Aburumman, N. M. (2013), The relationship between cash conversion cycle and financial characteristics of industrial sectors: An empirical study, Investment Management and Financial Innovations, 10(4), 95-102.
  5. Alvarez, T., Sensini, L., Vazquez, M. (2021), Working Capital Management and Profitability: Evidence from an Emergent Economy, International Journal of Advances in Management and Economics, 10(1), 32-39.
  6. Asteriou, D., Agiomirgianakis, G. M. (2001), Human capital and economic growth: time series evidence from Greece, Journal of Policy Modeling, 23(5), 481-489.
  7. Bayer, C., Hanck, C. (2013), Combining non‐cointegration tests, Journal of Time series analysis, 34(1), 83-95.
  8. Borlea, S. N., Achim, M. V. (2014), Analysis of the Short–Term Financial Equilibrium for Romanian Companies, Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice, 24(1), 162-178.
  9. Brigham, F., Houston, J. (2007), Fundamentals of financial management. Thomson Southwestern, Cincinnati. Published by scientific research, an Academic publisher.
  10. Chalmers, D. K., Sensini, L., Shan, A. (2020), Working Capital Management (WCM) and Performance of SMEs: Evidence from India, International Journal of Business and Social Science, 11(7), 57-63, https://doi.org/10.30845/ijbss.v11n7p7.
  11. Choudhury, M. A., Harahap, S. S. (2008), Interrelationship between Zakat, Islamic bank and the economy: A theoretical exploration, Managerial Finance.
  12. Clubb, C. D. (1992), A Pedagogic Note on the Weighted Average Cost of Capital and Project Valuation, Journal of Business Finance & Accounting, 19(3), 465-467.
  13. Dhole, S., Mishra, S., Pal, A. M. (2019), Efficient working capital management, financial constraints and firm value: A text-based analysis, Pacific-Basin Finance Journal, 58, 101212.
  14. Dickey, D., Fuller, W.A. (1979), Distribution of the estimates for autoregressive time series with unit root, J Am Stat Assoc 74:427–431.
  15. Engle, R. F., Granger, C. W. (1987), Co-integration and error correction: representation, estimation, and testing, Econometrics: Journal of the Econometric Society, 251-276.
  16. Enders, W., Lee, J. (2004), Testing for a unit root with a nonlinear Fourier function, Econometric Society 2004 Far Eastern Meetings, 457(2) 1-47.
  17. Enow, S. T., Brijlal, P. (2014), The effect of working capital management on Profitability: The case of small, medium and micro enterprises, South Africa, The Journal of Accounting and Management, 4(2), 7-15.
  18. Eunju, Y., SooCheong, J. (2005), The effect of financial leverage on profitability and risk of restaurant firms, The Journal of Hospitality Financial Management, 13(1), 200-210.
  19. Fernández‐López, S., Rodeiro‐Pazos, D., Rey‐Ares, L. (2020), Effects of working capital management on firms' profitability: evidence from cheese‐producing companies, Agribusiness, 36(4), 770-791.
  20. Ganesan, V. (2007), An analysis of working capital management efficiency in telecommunication equipment industry, Rivier Academic Journal, 3(2), 12-25.
  21. Gel, Y. R., Gastwirth, J. L. (2008), A robust modification of the Jarque–Bera test of normality, Economics Letters, 99(1), 30-32.
  22. Gitman, L. J., Juchau, R., Flanagan, J. (2015), Principles of managerial finance. Pearson Higher Education A.U.
  23. Granger, C. (1969), Investigating Causal Relations by Econometric Models and Cross-Spectral Methods, Econometrica, 37(3), 34-56.
  24. Grau, A., Reig, A. (2021), Operating leverage and profitability of SMEs: agri-food industry in Europe, Small Business Economics, 57(1), 221-242.
  25. Hansen, B. E., Phillips, P. C. (1990), Estimation and inference in models of cointegration: A simulation study, Advances in econometrics, 8(1989), 225-248.
  26. Harris, R., Sollis, R. (2003), Applied Time Series Modelling and Forecasting. Wiley, West Sussex.
  27. Hidayat, I., Dewi, F. O. S. (2023), The Effect of Liquidity, Leverage, and Working Capital Turn on Profitability, APTISI Transactions on Management (ATM), 7(1), 60-68.
  28. Horne, J. C. V., Wachowicz Jr, J. M. (1992), Fundamentals of Financial Management, No. 658.14/H81fuE/8th Ed.
  29. Hussain, S., Nguyen, V. C., Nguyen, Q. M., Nguyen, H. T., Nguyen, T. T. (2021), Macroeconomic factors, working capital management, and firm performance—A static and dynamic panel analysis, Humanities and Social Sciences Communications, 8(1), 1-14.
  30. Iskandar, T., Dp, E. N., Darlis, E. (2014), The effect of working capital turnover, capital structure and liquidity on the profitability of industrial & chemical companies on the Indonesia Stock Exchange. Doctoral dissertation, Riau University.
  31. Jihadi, M., Vilantika, E., Hashemi, S. M., Arifin, Z., Bachtiar, Y., Sholichah, F. (2021), The Effect of Liquidity, Leverage, and Profitability on Firm Value: Empirical Evidence from Indonesia, The Journal of Asian Finance, Economics and Business, 8(3), 423-431.
  32. Johansen, S., Juselius, K. (1990), Maximum likelihood estimation and inference on cointegration—with application to the demand for money, Oxf Bull Econ Stat, 52, 169–210.
  33. Jose, M. L., Lancaster, C., Stevens, J. L. (1996), Corporate returns and cash conversion cycles, Journal of Economics and Finance, 20(1), 33-46.
  34. Khdour, N. (2021), The role of human resource managers in the promotion of hotel sector as a brand in Jordanian hotel industry-a cross-sectional study, Cogent Business & Management, 8(1), 1875535.
  35. Kilmer, J. T., Rodríguez, R. L. (2017), Ordinary least squares regression is indicated for studies of allometry, Journal of evolutionary biology, 30(1), 4-12.
  36. Larasati, E. (2011), The effect of managerial ownership, institutional ownership and dividend policy on the company's debt policy, Journal of Business Economics, 16(2), 103-107.
  37. Lazaridis, I., Tryfonidis, D. (2006), Relationship between working capital management and profitability of listed companies in the Athens stock exchange, Journal of financial management and analysis, 19(1), 26-35.
  38. Lim, H., Rokhim, R. (2021), Factors affecting profitability of pharmaceutical company: an Indonesian evidence, Journal of Economic Studies, 48(5), 981-995.
  39. Maulita, D., Tania, I. (2018), The effect of debt to equity ratio (DER), debt to asset ratio (DAR), and long term debt to equity ratio (LDER) on profitability, JAK (Journal of Accounting): Scientific Study of Accounting, 5(2), 132-137.
  40. Muhammad, R. T. F. (2018), Analysis of the Effect of Tax Avoidance on the Cost of Debt. Case Study on Consumer Goods Sector Companies Listed on the Indonesia Stock Exchange in 2012-2016. Doctoral dissertation, Bhayangkara University, Greater Jakarta.
  41. Murugesu, T. (2013), The effect of cash conversion cycle on Profitability: Listed plantation companies in Sri Lanka, Research Journal of Finance and Accounting, 4(18), 132-137.
  42. Nayak, R. K. (2022), Performance of Odisha State Co-operative Bank: An ARDL Approach, Arthaniti: Journal of Economic Theory and Practice, 21(1), 7-26.
  43. Nukala, V. B., Prasada Rao, S. S. (2021), Role of debt-to-equity ratio in project investment valuation, assessing risk and return in capital markets, Future Business Journal, 7(1), 13.
  44. Nwude, E. C., Agbo, E. I., Christian Ibe-Lamberts, C. I. L. (2018), Effect of cash conversion cycle on the profitability of public listed insurance companies, International Journal of Economics and Financial Issues, 8(1), 111-117.
  45. Paparoditis, E., Politis, D. N. (2018), The asymptotic size and power of the augmented Dickey–Fuller test for a unit root, Econometric Reviews, 37(9), 955-973.
  46. Pesaran, M. H., Shin, Y., Smith, R. J. (2001), Bounds testing approaches to the analysis of level relationships, Journal of applied econometrics, 16(3), 289-326.
  47. Pesaran, M., Shin, Y. (1999), An Autoregressive Distributed Lag Modeling Approach to Cointegration Analysis. In S. Strom, (ed). Econometrics and Economic Theory in the 20th Century: The Ragnar Frisch centennial Symposium, Cambridge University Press, Cambridge.
  48. Pesaran, M. H., Shin, Y., Smith, R. P. (1997), Pooled estimation of long-run relationships in dynamic heterogeneous panels.
  49. Phillips, P.C.B., Perron, P. (1988), Testing for a unit root in time series regression. Biometrical, 75, 335–346.
  50. Pirttilä, M., Virolainen, V. M., Lind, L., Kärri, T. (2020), Working capital management in the Russian automotive industry supply chain, International Journal of Production Economics, 221, 107474.
  51. Pordea, D., David, D., Mateș, D. (2020), The impact of operating cash flow and current ratio on the profitability in construction industry, Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice, 30(1), 22-32.
  52. Raza, A., Shaikh, A. U. H., Tursoy, T., Almashaqbeh, H. A., Alkhateeb, S. M. (2022), Empirical analysis of Financial Risk on Bank’s Financial Perfor-mance: An Evidence from Turkish Banking Industry, ILMA Journal of Social Sciences & Economics (IJSSE), 1 (3), 16, 38.
  53. Rodean, M. D., Balteș, N. (2014), Study regarding the performance of the Romanian banking system, Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice, 24(1), 179-189.
  54. Rois, R., Basak, T., Rahman, M. M., Majumder, A. K. (2012), Modified Breusch-Godfrey Test for restricted higher order autocorrelation in dynamic linear model-a distance based approach, International Journal of Business and Management, 7(17), 88.
  55. Santhi, I. W., Dewi, S. K. S. (2014), The Effect of Working Capital Management on Profitability Levels in Food and Beverage Companies Listed on the Indonesia Stock Exchange 2010-2013 Period, E-Journal of Management, 3(12), 31-50.
  56. Şărămăt, O., Dima, B., Angyal, C., Dima, S.A. (2013), Financial ratios and stock prices on developed capital markets, Studia Universitatis Vasile Goldiş, Arad-Seria Ştiinţe Economice, (1), 1-12.
  57. Takon, S.M. (2013), Does cash conversion cycle have impact on return on assets of Nigerian firms?, Research Journal of Finance and Accounting, 4(14), 34-42.
  58. Turner, P. (2010), Power properties of the CUSUM and CUSUMSQ tests for parameter instability, Applied Economics Letters, 17(11), 1049-1053.
  59. Twesigye, P. (2022), Structural, governance, & regulatory incentives for improved utility performance: A comparative analysis of electric utilities in Tanzania, Kenya, and Uganda, Utilities Policy, 79, 101419.
  60. Wang, Z., Akbar, M., Akbar, A. (2020), The interplay between working capital management and a firm’s financial performance across the corporate life cycle, Sustainability, 12(4), 1661.
  61. Zheng, F., Zhao, Z., Sun, Y., Khan, Y. A. (2021), Financial performance of China’s listed firms in presence of coronavirus: Evidence from corporate culture and corporate social responsibility, Current Psychology, 1-22.
DOI: https://doi.org/10.2478/sues-2024-0004 | Journal eISSN: 2285-3065 | Journal ISSN: 1584-2339
Language: English
Page range: 74 - 97
Submitted on: Mar 1, 2023
|
Accepted on: Jul 1, 2023
|
Published on: Jan 26, 2024
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2024 Ali Raza, Turgut Tursoy, Erum Shaikh, Ahsan-ul-Haque Shaikh, published by Vasile Goldis Western University of Arad
This work is licensed under the Creative Commons Attribution 4.0 License.