Effects of Working Capital Management on SME Profitability

The corporate finance literature has traditionally focused on the study of long-term financial decisions. Researchers have particularly offered studies analyzing investments, capital structure, dividends or company valuation, among other topics. But the investment that firms make in short-term assets, and the resources used with maturities of under one year, represent the main share of items on a firm's balance sheet. In fact, in the authors' sample the current assets of small and medium-sized Spanish firms represent 69.48 percent of their assets, and at the same time their current liabilities represent more than 52.82 percent of their liabilities.

Provided by: Universidad de Malaga Topic: SMBs Date Added: Apr 2006 Format: PDF

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