Akademik Veri Yönetim Sistemi
ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES, cilt.11, sa.1, ss.285-308, 2016 (ESCI)
The pioneering research on working capital were carried out using techniques such as correlation and linear regression analysis and many of these research studies have reported that there is a negative relationship between working capital and profitability. In fact, studies search for a linear relationship between working capital and profitability, contradicts the theory. Because according to financial theory, lack of working capital is hampering the operations of the business. Therefore, profitability is reduced. However, again according to the theory, in excess of working capital due to remain idle resources it will adversely affect profitability. Indeed, recent publications on the relationship between working capital and profitability is reported that there is a non-linear relationship and indicates the optimal size of working capital.