Toward Efficient Management of Working Capital: The case of the Palestinian Exchange

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dc.contributor.authorAwad, Ibrahim M.
dc.contributor.authorAl-Ewesat, Abdel-Rahman
dc.date.accessioned2018-09-15T11:38:36Z
dc.date.available2018-09-15T11:38:36Z
dc.date.issued2012-02-28
dc.description.abstractThe importance of this study comes from the truth that financial statements' users need reliable, relevant, and useful financial information that should be reflected in stock prices. However, this study aims at investigating current ratio, receivables turnover, inventory turnover, and earnings per share for 18 companies listed on PEX over the period from 2006 to 2011. Regression analysis and econometric techniques of Unit root test, Co-integration, and Granger causality are applied. The study outcomes indicate that stock prices of companies listed on PEX are affected by working capital components. The results of traditional Granger Causality reveal that there is no causal relationship between stock prices and working capital components. In addition, there is a positive relationship between CR and EPS and stock prices whereas there is a negative relationship between RT and IT. The paper concludes that cash, times of receivables collection and inventory turnover are necessary to be taken into account by both investors and companies for improved the management of working capital at the PEX.en_US
dc.description.sponsorshipWe are grateful to anonymous referees whose comments have made this paper better.en_US
dc.identifier.issn1792-6599
dc.identifier.urihttps://dspace.alquds.edu/handle/20.500.12213/899
dc.language.isoen_USen_US
dc.publisherInternational Scientific Pressen_US
dc.subjectCausalityen_US
dc.subjectDickey-fuller testen_US
dc.subjectPEXen_US
dc.subjectStock pricesen_US
dc.subjectWorking capital managementen_US
dc.titleToward Efficient Management of Working Capital: The case of the Palestinian Exchangeen_US
dc.typeArticleen_US
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