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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Main Author: Yusuf Kurt
Format: Article
Language:English
Published: Istanbul University Press 2023-08-01
Series:Muhasebe Enstitüsü Dergisi
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/9A26202DD9D34A6A8BEBECD4A4E79DB0
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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.
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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