Cash Conversion Cycle and Firm’s Performance of Japanese Firms

Nobanee, H., Abdullatif, M., AlHajjar, M. (2011). Cash Conversion Cycle and Firm’s Performance of Japanese Firms. Asian Review of Accounting, 19(2), 147-156.

11 Pages Posted: 19 Jul 2010 Last revised: 1 Jan 2018

See all articles by Haitham Nobanee

Haitham Nobanee

University of Oxford; Abu Dhabi University; University of Liverpool

Modar Abdullatif

Middle East University

Maryam Al Hajjar

Abu Dhabi University

Date Written: July 19, 2010

Abstract

In this paper we investigate the relation between the firm’s cash conversion cycle and its profitability. This relationship is examined using dynamic panel data analysis for the full sample, by industry and by size. Using a sample of 34771 firm years covering the period 1990-2004, we find a strong negative relation between the length of the firm’s cash conversion cycle and its profitability in all our study samples except for consumer goods companies and services companies.

Keywords: Working Capital Management, Cash Conversion Cycle, Return on Investment

JEL Classification: G30

Suggested Citation

Nobanee, Haitham and Nobanee, Haitham and Abdullatif, Modar and Al Hajjar, Maryam, Cash Conversion Cycle and Firm’s Performance of Japanese Firms (July 19, 2010). Nobanee, H., Abdullatif, M., AlHajjar, M. (2011). Cash Conversion Cycle and Firm’s Performance of Japanese Firms. Asian Review of Accounting, 19(2), 147-156., Available at SSRN: https://ssrn.com/abstract=1645118 or http://dx.doi.org/10.2139/ssrn.1645118

Haitham Nobanee (Contact Author)

Abu Dhabi University ( email )

Abu Dhabi
United Arab Emirates

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

University of Liverpool ( email )

Chatham Street
Brownlow Hill
Liverpool, L69 7ZA
United Kingdom

Modar Abdullatif

Middle East University ( email )

Sabtieh
Boushrieh
Amman
Jordan

Maryam Al Hajjar

Abu Dhabi University ( email )

PO Box 59911
Abu Dhabi, Abu Dhabi 59911
United Arab Emirates

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