Strategic working capital management in Polish SMES: Navigating risk and reward for enhanced financial performance

Q2 Economics, Econometrics and Finance

Investment Management and Financial Innovations Pub Date : 2024-05-20 DOI:10.21511/imfi.21(2).2024.20

Amer Morshed

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引用次数: 0

Abstract

This study examines the impact of operating capital management (WCM) strategies on the monetary execution of small and medium-sized enterprises (SMEs) in Poland, with a particular focus on finding the correct equalization between liquidity and benefit. The review utilizes relapse investigation to survey the effect of forceful and conservative (WCM) techniques on the benefit and fluidity of 4,891 Polish SMEs from 2012 to 2021, as measured by an informational index of budgetary and operational information. The results demonstrate a noteworthy connection between WCM improvements and budgetary results. However, aggressive actions do not just mean higher earnings; they also involve heavier financial risks. On the other hand, cautious methods are linked with stronger financial stability but may lead to lower profit. According to the survey, when cash conversion cycle (CCC) days fall by 1%, return on total assets (ROA) can increase by approximately 1:0 percentage points. This demonstrates again that WCM is very important in improving company profits. These findings have implications for academics, practitioners, and government officials.

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波兰中小型企业的战略性运营资本管理：把握风险和回报，提高财务业绩

本研究探讨了运营资本管理（WCM）战略对波兰中小型企业（SMEs）货币执行的影响，尤其关注如何在流动性和效益之间找到正确的平衡点。这篇综述利用复发调查，调查了 2012 年至 2021 年期间强力和保守（WCM）技术对 4891 家波兰中小型企业的效益和流动性的影响，并以预算和运营信息的信息指数来衡量。结果表明，WCM 的改进与预算结果之间存在值得注意的联系。然而，激进的行动不仅意味着更高的收益，还涉及更高的财务风险。另一方面，谨慎的方法与更强的财务稳定性有关，但可能导致利润降低。调查显示，当现金转换周期（CCC）天数减少 1%时，总资产回报率（ROA）可增加约 1:0 个百分点。这再次表明，WCM 对提高公司利润非常重要。这些发现对学术界、从业人员和政府官员都有借鉴意义。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Investment Management and Financial Innovations Economics, Econometrics and Finance-Finance

CiteScore

2.50

自引率

0.00%

发文量

审稿时长

11 weeks

期刊介绍： The international journal “Investment Management and Financial Innovations” encompasses the results of theoretical and empirical researches carried out both on macro- and micro-levels, concerning various aspects of financial management and corporate governance, investments and innovations (including using of quantitative methods). It is focused on the international community of financiers, both academics and practitioners. Key topics: financial and investment markets; government policy and regulation; corporate governance; information and market efficiency; financial forecasting and simulation; financial institutions: investment companies, investment funds, investment banks, hedge funds, private pension funds; objects of real and financial investing; financial instruments and derivatives; efficiency of investment projects; econometric and statistic methods in project management; alternative investments; ratings and rating agencies.