THE IMPACT OF WORKING CAPITAL ON FIRM RISK: EVIDENCE FROM BORSA ISTANBUL

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Akpınar O.

100th International Scientific Conference on Economic and Social Development, Veliko Turnovo, Bulgaristan, 5 - 06 Ekim 2023, ss.158-162

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Basıldığı Şehir: Veliko Turnovo
  • Basıldığı Ülke: Bulgaristan
  • Sayfa Sayıları: ss.158-162
  • Kocaeli Üniversitesi Adresli: Evet

Özet

This study aims to evaluate the relationship between working capital management and firm risk by examining data from 83 Turkish manufacturing companies listed on Borsa Istanbul between 2015 and 2019. By utilizing the standard deviation of stock returns as a measure of firm risk through panel data analysis, this study establishes a connection between independent variables and firm risk. Additionally, profitability, leverage, size, and growth are employed as control variables. The empirical findings demonstrate that the level of working capital is associated with firm risk, with firms maintaining better cash positions experiencing lower volatility in stock returns. These results emphasize the significant implications of working capital management for firm risk. Keywords: Working Capital, Stock Returns, Firm Risk, Panel Data