THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPIRICAL STUDY FROM TURKEY

Bengu VURAN; Burcu ADİLOGLU

Makale detayları

THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPIRICAL STUDY FROM TURKEY

Yazarlar:

Bengu VURAN | Burcu ADİLOGLU

Yayıncı:

PressAcademia

Ana Başlıklar:

Sosyoloji & antropoloji

Dergi:

Journal of Business Economics and Finance 2018 Vol.7 Issue 3, pp.288-294

Belge Tipi:

Makale

Yayın Tarihi:

9/2018

Belge Dili:

İngilizce

Document ID (Org No.):

2000737627

Sıklık:

Üç Aylık

eISSN:

2146-7943

Özet:

 


Purpose- Cash gap or cash conversion cycle 
refers to the time interval between the date when a company pays cash
out for the inventory it purchases and the date it receives cash from customers
for the same inventory. That interval must be
financed.  Management of cash
conversion cycle is vital issue in corporate financial management since it
directly affects the profitability of the firms. The
purpose of this study is to analyze the relationship of cash gap and
corporate profitability.


Methodology- The data set includes all manufacturing firms listed
in Borsa Istanbul (BIST) for the year 2017. The financial sector firms are
excluded since their financial statements have different aspects. Regression and correlation analyses
are conducted to examine the relationship between the cash gap and
profitability.


Findings- The results of the study evaluate how cash conversion cycle affects the
profitability and show if there is a statistical significance between
profitability the cash conversion cycle. 


Conclusion- Managers of the companies that handle the cash conversion cycle
correctly and keep each different component (accounts receivables, accounts
payables, inventory) to an optimum level can create profits and seems
successful from the views of investors. 
The study also contributes to the literature on the issue of
relationship between cash gap and the firm’s profitability.


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Makale detayları

THE RELATIONSHIP BETWEEN CASH GAP AND PROFITABILTY: AN EMPIRICAL STUDY FROM TURKEY

Yazarlar: Bengu VURAN | Burcu ADİLOGLU

Yayıncı: PressAcademia

Ana Başlıklar: Sosyoloji & antropoloji

Dergi: Journal of Business Economics and Finance 2018 Vol.7 Issue 3, pp.288-294

Belge Tipi: Makale

Yayın Tarihi: 9/2018

Belge Dili: İngilizce

Document ID (Org No.): 2000737627

Sıklık: Üç Aylık

eISSN: 2146-7943

Sayı

Yazarlar:

Bengu VURAN | Burcu ADİLOGLU

Yayıncı:

PressAcademia

Ana Başlıklar:

Sosyoloji & antropoloji

Dergi:

Journal of Business Economics and Finance 2018 Vol.7 Issue 3, pp.288-294

Belge Tipi:

Makale

Yayın Tarihi:

9/2018

Belge Dili:

İngilizce

Document ID (Org No.):

2000737627

Sıklık:

Üç Aylık

eISSN:

2146-7943