(Universidad Icesi, 2006-12-01) Arcos Mora, Mauricio Alejandro
This document analyzes the relation between the efficiency of working capital
management and corporate profitability for the period of 2001 through 2004. Using a
regression framework, we find a strong negative relation between the number of day the
company has to finance its working capital and its profitability. Thus, this paper supports the
argument that shorter trade cycles would be accompanied by higher profitability levels.
