Portal de Periódicos da CAPES

Working capital management in SMEs

2009; Wiley; Volume: 50; Issue: 3 Linguagem: Inglês

10.1111/j.1467-629x.2009.00331.x

1467-629X

Sonia Baños‐Caballero, Pedro J. García‐Teruel, Pedro Martínez Solano,

Firm Innovation and Growth

Abstract This paper analyses the determinants of Cash Conversion Cycle (CCC) for small‐ and medium‐sized firms. It has been found that these firms have a target CCC length to which they attempt to converge, and that they try to adjust to their target quickly. The results also show that it is longer for older firms and companies with greater cash flows. In contrast, firms with more growth opportunities, and firms with higher leverage, investment in fixed assets and return on assets have a more aggressive working capital policy.