The Effect of Working Capital Management on Businesses’ Investment Decisions
This research has been conducted to determine the effect of working capital management on the investment decisions of companies that traded on Borsa Istanbul (BIST) between 2013-2022. The study uses fixed assets to represent the variable of investment decisions and net working capital, accounts rece...
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| Format: | Article |
| Language: | English |
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Istanbul University Press
2023-08-01
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| Series: | Muhasebe Enstitüsü Dergisi |
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| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/9A26202DD9D34A6A8BEBECD4A4E79DB0 |
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| _version_ | 1850148339717242880 |
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| author | Yusuf Kurt |
| author_facet | Yusuf Kurt |
| author_sort | Yusuf Kurt |
| collection | DOAJ |
| description | This research has been conducted to determine the effect of working capital management on the investment decisions of companies that traded on Borsa Istanbul (BIST) between 2013-2022. The study uses fixed assets to represent the variable of investment decisions and net working capital, accounts receivables turnover, inventory turnover, and cash ratio to represent working capital. The research has included the variables of cash flows from main activities, business size, and growth rate into the model as the control variables and tested the data obtained in this context using the panel data analysis method. According to the results, the best estimator of the model has been determined to be the random effects estimator. In addition, the study observed net working capital to have a significant negative effect and firm size to have a significant positive effect on the enterprises’ investment decisions. The variables of receivable turnover, inventory turnover, cash ratio, cash flows from main activities, and growth rate were observed to have no effect on enterprises’ investment decisions. |
| format | Article |
| id | doaj-art-91daccac33294886b1f7a7645f509486 |
| institution | OA Journals |
| issn | 2667-6982 |
| language | English |
| publishDate | 2023-08-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | Muhasebe Enstitüsü Dergisi |
| spelling | doaj-art-91daccac33294886b1f7a7645f5094862025-08-20T02:27:16ZengIstanbul University PressMuhasebe Enstitüsü Dergisi2667-69822023-08-0169576610.26650/MED.1270970123456The Effect of Working Capital Management on Businesses’ Investment DecisionsYusuf Kurt0https://orcid.org/0000-0002-1071-4205Van Yüzüncü Yıl Üniversitesi, Van, TurkiyeThis research has been conducted to determine the effect of working capital management on the investment decisions of companies that traded on Borsa Istanbul (BIST) between 2013-2022. The study uses fixed assets to represent the variable of investment decisions and net working capital, accounts receivables turnover, inventory turnover, and cash ratio to represent working capital. The research has included the variables of cash flows from main activities, business size, and growth rate into the model as the control variables and tested the data obtained in this context using the panel data analysis method. According to the results, the best estimator of the model has been determined to be the random effects estimator. In addition, the study observed net working capital to have a significant negative effect and firm size to have a significant positive effect on the enterprises’ investment decisions. The variables of receivable turnover, inventory turnover, cash ratio, cash flows from main activities, and growth rate were observed to have no effect on enterprises’ investment decisions.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/9A26202DD9D34A6A8BEBECD4A4E79DB0working capitalinvestment decisionsturnover rate |
| spellingShingle | Yusuf Kurt The Effect of Working Capital Management on Businesses’ Investment Decisions Muhasebe Enstitüsü Dergisi working capital investment decisions turnover rate |
| title | The Effect of Working Capital Management on Businesses’ Investment Decisions |
| title_full | The Effect of Working Capital Management on Businesses’ Investment Decisions |
| title_fullStr | The Effect of Working Capital Management on Businesses’ Investment Decisions |
| title_full_unstemmed | The Effect of Working Capital Management on Businesses’ Investment Decisions |
| title_short | The Effect of Working Capital Management on Businesses’ Investment Decisions |
| title_sort | effect of working capital management on businesses investment decisions |
| topic | working capital investment decisions turnover rate |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/9A26202DD9D34A6A8BEBECD4A4E79DB0 |
| work_keys_str_mv | AT yusufkurt theeffectofworkingcapitalmanagementonbusinessesinvestmentdecisions AT yusufkurt effectofworkingcapitalmanagementonbusinessesinvestmentdecisions |