How does the quality of institutions influence the cash conversion cycle of firms?

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

Pacific-Basin Finance Journal Pub Date : 2025-04-17 DOI:10.1016/j.pacfin.2025.102783

Chong-Chuo Chang , San-San Kyi , Ya-Wen Chen

引用次数: 0

Abstract

The cash conversion cycle (CCC) is widely used as a proxy for measuring a firm's liquidity position, with a shorter CCC being desirable for efficient working capital management. While many studies explore the impact of firms' internal factors on CCC, few discuss the role of external factors such as the quality of a country's institutions. Institutional quality can be defined as a set of working rules that play a key role in the long-term growth potential of an economy. This study aims to discover the relationship between institutional quality and CCC at a firm level. The empirical findings prove that firms in economies with good institutional quality tend to maintain shorter CCC, thereby achieving more effective working capital management.

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机构的质量如何影响公司的现金转换周期？

现金转换周期（CCC）被广泛用作衡量公司流动性状况的代理，较短的CCC对于有效的营运资本管理是理想的。虽然许多研究探讨了企业内部因素对CCC的影响，但很少讨论外部因素（如国家制度质量）的作用。制度质量可以定义为对一个经济体的长期增长潜力起关键作用的一套工作规则。本研究旨在从企业层面探讨制度质量与企业合作关系。实证结果表明，制度质量好的经济体中的企业往往维持较短的CCC，从而实现更有效的营运资金管理。

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

Pacific-Basin Finance Journal BUSINESS, FINANCE-

CiteScore

6.80

自引率

6.50%

发文量

157

期刊介绍： The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.