TY - JOUR
T1 - Determinants of working capital management in latin american companies
AU - Mongrut, Samuel
AU - Fuenzalida O'Shee, Darcy
AU - Zavaleta, Claudio Cubillas
AU - Zavaleta, Johan Cubillas
PY - 2014/1/1
Y1 - 2014/1/1
N2 - 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.
AB - 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.
KW - International management
KW - Working capital management
KW - International management
KW - Working capital management
UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=84892603516&origin=inward
UR - https://www.scopus.com/inward/citedby.uri?partnerID=HzOxMe3b&scp=84892603516&origin=inward
U2 - 10.15446/innovar.v24n51.41235
DO - 10.15446/innovar.v24n51.41235
M3 - Article in a journal
SN - 0121-5051
VL - 24
SP - 5
EP - 18
JO - Innovar
JF - Innovar
IS - 51
ER -