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WCM component importance ranking order by SMEs: financial directors perspective

Afrifa, G.A. (2014) WCM component importance ranking order by SMEs: financial directors perspective. International Journal of Current Research, 6 (1). pp. 4631-4639. ISSN 0975-833X. (doi:10.2139/ssrn.2356843) (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
http://dx.doi.org/10.2139/ssrn.2356843

Abstract

This paper reports the results of an investigation into the ranking order of Working Capital Management (WCM) components of Small and Medium Enterprises (SMEs) listed on the Alternative Investment Market (AIM), from the perspective of financial directors. The analyses are based on questionnaire distributed to 248 AIM listed SMEs. The paper employs the one-way ANOVA and post hoc test on responses from 72 managers of AIM listed SMEs. The results show differences in the importance of each component of WCM. First, inventory holding period importance is shown to differ from that of accounts receivable period, accounts payable period and cash conversion cycle. The results also show that accounts receivable period importance is different from accounts payable period and cash conversion cycle. However, there is no difference of importance between accounts payable period and cash conversion cycle. In terms of ranking order, accounts receivable period is ranked first, leading to the conclusion that given the limited resources of SMEs, they need to prioritise their WCM by focusing on accounts receivable period to improve profitability.

Item Type: Article
DOI/Identification number: 10.2139/ssrn.2356843
Uncontrolled keywords: Working Capital Management components, Small and Medium Enterprises, Ranking Order, Alternative Investment Market, United Kingdom
Subjects: H Social Sciences
H Social Sciences > H Social Sciences (General)
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 13:55 UTC
Last Modified: 29 May 2019 20:24 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/66506 (The current URI for this page, for reference purposes)
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