The Effect of Working Capital Management on the Performance of the Textile Firms: Evidence from Fragile Five Countries (FFCs)

Year 2022, Volume: 7 Issue: 4, 814 - 838, 31.12.2022

Ayşegül Toy , Ayhan Kapusuzoğlu , Nildağ Başak Ceylan

https://doi.org/10.30784/epfad.1205427

Abstract

An effective working capital can contribute to achieving the firm’s financial profitability, increasing the value of companies, creating a short-term financing source, continuing their activities and increasing their sustainability. This study examines the effect of working capital management on firm performances (ROA and TOBIN's Q) of firms operating in the textile industry in 4 countries (Brazil, India, Indonesia and Turkey) called the Fragile Five countries between 2010 and 2020. In the estimation of the coefficients of the panel regression models determined in this study, the Driscoll-Kraay estimator, which is robust against the problems of unobserved heterogeneity, autocorrelation, varying variance and cross-section dependence, was used. In the general evaluation of the panel data analysis estimation results, it is seen that the effect of working capital management on financial performance differs significantly depending on the selected performance variable. All of these results show that successful and effective working capital management in the textile sector depends on taking into account the differences in economic conditions, differences in capital markets, financial market performance and daily working habits, and evaluating each component of working capital separately.

Keywords

Working Capital Management, Profitability, Firm Performance, Fragile Five, Driscoll-Kraay, Textile

Çalışma Sermayesi Yönetiminin Tekstil Firmalarının Performansına Etkisi: Kırılgan Beşli Ülkelerden Kanıtlar

Abstract

Etkin bir çalışma sermayesi; firmaların finansal karlılığa ulaşmalarını sağlamak, firmaların değerlerini artırmak, kısa dönem finansman kaynağı yaratmak, faaliyetlerini devam ettirmek ve sürdürülebilirliklerini artırmak bakımından katkı sağlayabilir. Bu çalışma, 2010-2020 yılları arasında Kırılgan Beşli ülke olarak adlandırılan 4 ülkedeki (Türkiye, Hindistan, Endonezya ve Brezilya) tekstil sektöründe faaliyet gösteren firmaların çalışma sermayesi yönetimlerinin firma performansları (ROA ve TOBIN’s Q) üzerindeki etkisini incelemektedir. Bu çalışmada belirlenen panel regresyon modellerinin katsayılarının tahmininde, gözlemlenmemiş heterojenlik, otokorelasyon, değişen varyans ve yatay kesit bağımlılığı problemlerine karşı sağlam olan Driscoll-Kraay tahmincisi kullanılmıştır. Panel veri analizi tahmin sonuçlarının genel değerlendirmesinde, işletme sermayesi yönetiminin finansal performans üzerindeki etkisinin seçilen performans değişkenine bağlı olarak önemli ölçüde farklılaştığı görülmektedir. Bu sonuçların bütünü, tekstil sektöründe başarılı ve etkin işletme sermayesi yönetiminin ekonomik koşullardaki farklılıkları, sermaye piyasalarındaki farklılıkları, finansal piyasa performansını ve günlük çalışma alışkanlıklarını dikkate almasına ve işletme sermayesini oluşturan her bir unsurun ayrı ayrı değerlendirilmesine bağlı olduğunu göstermektedir.

Keywords

Çalışma Sermayesi Yönetimi, Karlılık, Firma Performansı, Kırılgan Beşli, Driscoll-Kraay, Tekstil

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