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https://doi.org/10.18045/zbefri.2021.1.135

Target adjustment model and new working capital management performance measure: Evidence from Croatia

Dina Korent   ORCID icon orcid.org/0000-0002-8285-6907 ; Faculty of Organization and Informatics, Varaždin, University of Zagreb – Croatia

Puni tekst: engleski, pdf (815 KB) str. 135-162 preuzimanja: 52* citiraj
APA 6th Edition
Korent, D. (2021). Target adjustment model and new working capital management performance measure: Evidence from Croatia. Zbornik radova Ekonomskog fakulteta u Rijeci, 39 (1), 135-162. https://doi.org/10.18045/zbefri.2021.1.135
MLA 8th Edition
Korent, Dina. "Target adjustment model and new working capital management performance measure: Evidence from Croatia." Zbornik radova Ekonomskog fakulteta u Rijeci, vol. 39, br. 1, 2021, str. 135-162. https://doi.org/10.18045/zbefri.2021.1.135. Citirano 16.10.2021.
Chicago 17th Edition
Korent, Dina. "Target adjustment model and new working capital management performance measure: Evidence from Croatia." Zbornik radova Ekonomskog fakulteta u Rijeci 39, br. 1 (2021): 135-162. https://doi.org/10.18045/zbefri.2021.1.135
Harvard
Korent, D. (2021). 'Target adjustment model and new working capital management performance measure: Evidence from Croatia', Zbornik radova Ekonomskog fakulteta u Rijeci, 39(1), str. 135-162. https://doi.org/10.18045/zbefri.2021.1.135
Vancouver
Korent D. Target adjustment model and new working capital management performance measure: Evidence from Croatia. Zbornik radova Ekonomskog fakulteta u Rijeci [Internet]. 2021 [pristupljeno 16.10.2021.];39(1):135-162. https://doi.org/10.18045/zbefri.2021.1.135
IEEE
D. Korent, "Target adjustment model and new working capital management performance measure: Evidence from Croatia", Zbornik radova Ekonomskog fakulteta u Rijeci, vol.39, br. 1, str. 135-162, 2021. [Online]. https://doi.org/10.18045/zbefri.2021.1.135

Sažetak
The paper develops a dynamic panel model of target adjustment in order to investigate the determinants of the cash conversion cycle of companies in manufacturing, trade, and information and communication industries in the Republic of Croatia for the period 2008-2015. The emphasis is on examining the significances and the speeds of the adjustment processes of the cash conversion cycles of companies subsamples by industry and size. Due to the adjustment costs, the results show that the observed companies gradually adjust their current cash conversion cycles to the target ones. In addition, these adjustments were slow, which can be explained by the predominance of the adjustment costs over the costs of being in disequilibrium. Moreover, the results of this study indicate that the rate of adjustment varies among companies from different industries and size categories. The differences in market power allow companies to change more easily the components of the cash conversion cycle. As a result, they enable faster convergence to their target levels. Besides the lagged cash conversion cycle, tested potential determinants that significantly affect the cash conversion cycles of Croatian companies in selected industries, although with different robustness, are company size, company growth, return on assets, fixed asset investments, financial leverage and the growth of the real gross domestic product. Finally, the paper presents a new measure for working capital management performance.

Ključne riječi
working capital management; target adjustment model; determinants; performance measure; Croatia

Hrčak ID: 259595

URI
https://hrcak.srce.hr/259595

[hrvatski]

Posjeta: 108 *