Determinants of working capital management in latin american companies

Samuel Mongrut, Darcy Fuenzalida O'Shee, Claudio Cubillas Zavaleta, Johan Cubillas Zavaleta

Research output: Contribution to journalArticle in a journalpeer-review

16 Scopus citations


The aim of this study is to determine the factors that affect working capital management in Latin American companies. Using an unbalanced panel data analysis for companies quoted in five Latin American capital markets it is shown that companies in Argentina, Brazil, Chile and Mexico are holding cash excesses, which could destroy firm value. Results show that the industry cash conversion cycle, the company market power, its future sales and country risk have an influence on the way Latin American companies manage their working capital with significant differences among countries in the region.
Translated title of the contributionDeterminantes de la gestión del capital de trabajo en Latinoamérica
Original languageEnglish
Pages (from-to)5-18
Number of pages14
Issue number51
StatePublished - 1 Jan 2014


  • International management
  • Working capital management


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