ÇALIŞMA SERMAYESİ YÖNETİMİNİN İŞLETME KARLILIĞI VE FAALİYET ETKİNLİĞİ ÜZERİNDEKİ ETKİSİ
THE EFFECT OF WORKING CAPITAL MANAGEMENT ON FIRM PROFITABILITY AND OPERATING EFFECTIVENESS

Summary/Abstract: Since the 1990s, many types of research done by different researchers on both international and local scales have shown how effective working capital management is for enterprises. In these researches done from the past up to the present, the relationship between operation profitability or firm value and working capital management has been studied. In this study, which aims to evaluate the effect of working capital management on operational profitability and operating effectiveness, quarterly data belonging to the period 2011Q1-2018Q2 of firms operate in the BIST informatics sector. Regression models have been set in the study, representing operational profitability and operating effectiveness. Model-1 focuses on return on equity while Model-2 focuses on operating effectiveness. According to findings provided from the panel data analysis of the regression models set, the equity profitability in the BIST informatics sector is affected by the working asset turnover rate. In contrast, the operating effectiveness is affected by both the current ratio and working asset turnover rate statistically at a significant level. However, both models have not found meaningful relationships between stock dependency rate and dependent variables.

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