Afrifa, Godfred Adjapong, Tingbani, Ishmael, Adesina, Oluseyi Oluseun (2022) Stochastic frontier modelling of working capital efficiency across Europe. Technological Forecasting and Social Change, 184 . Article Number 122012. ISSN 0040-1625. (doi:10.1016/j.techfore.2022.122012) (KAR id:97079)
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Official URL: https://doi.org/10.1016/j.techfore.2022.122012 |
Abstract
This paper adopts the stochastic frontier analysis (SFA) to model working capital efficiency (WCE) on a sample of 6170 European firms from 2009 to 2018. We find: (i) larger firms are more efficient with their working capital management (WCM) than smaller firms, (ii) higher cash holding contributes to WCE, (iii) high competition is less conducive to WCE than low competition, (iv) export and sales growth potential decrease WCE and (v) WCE increases with access to bank credit. In the analysis, a distinction is made between the “old” EU countries and the “new” EU countries. The results are sensitive to the year of admission into the EU. The results are robust to omitted variable bias, using a more novel approach.
Item Type: | Article |
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DOI/Identification number: | 10.1016/j.techfore.2022.122012 |
Uncontrolled keywords: | Working capital efficiency, Working capital management, Determinants of WCE, Inventory, Trade receivables, Trade payables, Stochastic frontier analysis |
Subjects: | H Social Sciences |
Divisions: | Divisions > Kent Business School - Division > Department of Accounting and Finance |
Funders: | University of Kent (https://ror.org/00xkeyj56) |
Depositing User: | Godfred Afrifa |
Date Deposited: | 23 Sep 2022 13:37 UTC |
Last Modified: | 04 Jul 2023 11:13 UTC |
Resource URI: | https://kar.kent.ac.uk/id/eprint/97079 (The current URI for this page, for reference purposes) |
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