Abstract

Working capital management (WCM) is one of the most important decisions for all firms. The main components of WCM are days sales outstanding (DSO), days inventory outstanding (DIO), days payable outstanding (DPO), and cash conversion cycle (CCC). Using a sample of 332 Czech firms, including 20 certified firms from the EFQM (European Foundation for Quality Management) Model, the current study explored the effects of the main components of WCM on firms’ profitability. We used two different regression models to test the hypothesis, i.e. pooled regression and maximum likelihood estimation (MLE). The findings of the research revealed all the components of WCM have a negative impact on firm profitability. On the other hand, the interaction terms of the EFQM certified firms with the components of WCM showed a positive impact on firms’ profitability which means that there is a positive relationship between the components of WCM of the certified firms and profitability. However, it is examined that the quality certificate/award from EFQM Excellence Model decreases the firm’s profitability. The outcomes of the current research will be beneficial to academics, managers, leaders, and directors of the firms to improve their firm’s profitability.

摘要

营运资金管理 (WCM) 是所有公司最重要的决策之一。WCM 的主要组成部分是未清销售天数 (DSO)、未清库存天数 (DIO)、未清应付天数 (DPO) 和现金转换周期 (CCC)。本研究使用了 332 家捷克公司的样本，其中包括 20 家来自 EFQM（欧洲质量管理基金会）模型的认证公司，本研究探讨了 WCM 的主要组成部分对公司盈利能力的影响。我们使用了两种不同的回归模型来检验假设，即合并回归和最大似然估计 (MLE)。研究结果表明，WCM 的所有组成部分都对公司盈利能力产生负面影响。另一方面，EFQM 认证企业与 WCM 成分的交互作用项对企业盈利能力有正向影响，这意味着认证企业的 WCM 成分与盈利能力之间存在正相关关系。然而，经审查，EFQM 卓越模型的质量证书/奖项降低了公司的盈利能力。当前研究的结果将有利于公司的学者、经理、领导和董事提高其公司的盈利能力。