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Working Capital Management Practices and Profitability of AIM Listed SMEs

Afrifa, G.A. (2015) Working Capital Management Practices and Profitability of AIM Listed SMEs. Journal of Enterprising Culture, 23 (01). pp. 1-23. (doi:10.1142/S0218495815500016) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
https://dx.doi.org/10.1142/S0218495815500016

Abstract

This paper reports the results of an investigation of the effect of Working Capital Management (WCM) practices on profitability of Small and Medium Enterprises (SMEs) listed on the Alternative Investment Market (AIM), from the perspective of financial directors. Specifically, I look at their WCM target level practices, WCM alteration frequency and WCM strategy practices. The analyses are based on questionnaire distributed to 248 AIM listed SMEs. The paper employs OLS regression on responses from 72 managers of AIM listed SMEs. The results show that the WCM practices of AIM listed SMEs managers have an effect on profitability. However, the results show that given the limited resources of SMEs, the main focus of managers should be on the setting of specific target level for WCM so as to increase profitability.

Item Type: Article
DOI/Identification number: 10.1142/S0218495815500016
Uncontrolled keywords: WCM practices; profitability; SMEs listed on the AIM
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > Kent Business School
Faculties > Social Sciences > Kent Business School > Accounting and Finance
Depositing User: Godfred Afrifa
Date Deposited: 21 Mar 2018 13:44 UTC
Last Modified: 29 May 2019 20:24 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/66504 (The current URI for this page, for reference purposes)
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