Repository logo
 
Publication

Is there an optimal working capital management that minimizes European stock risk?

2024Research article Open access
Simple item page
datacite.subject.fosCiências Sociais
datacite.subject.sdg08:Trabalho Digno e Crescimento Económico
dc.contributor.authorCoelho, Tiago
dc.contributor.authorLisboa, Inês
dc.contributor.authorOliveira, Célia
dc.date.accessioned2025-12-04T20:27:58Z
dc.date.available2025-12-04T20:27:58Z
dc.date.issued2024
dc.descriptionThe journal is institutionally owned by ISAG - European Business School, with the technical support of Research Center in Business Sciences and Tourism of the Consuelo Vieira da Costa Foundation (CICET-FCVC).
dc.description.abstractPurpose: This paper investigates the existence of an optimal point of the cash conversion cycle (CCC) and its components, which minimizes firms’ stock risk. Methodology: This study applies fixed effect models to a sample of firms listed in Euronext exchanges, from 2011 to 2019. Stock risk is proxied by the standard deviation of stock returns. The quadratic function of the CCC and its components (days sales outstanding – DSO, days sales inventory – DSI, and days payable outstanding – DPO) is applied to capture an optimal point of the working capital management (WCM). Results: Results show the existence of a U-shaped relation between WCM and stock risk, suggesting the existence of an optimal CCC and DSI point that minimizes stock risk Originality: To the best of our knowledge, this is the first paper that explores the existence of an optimal CCC point and also an optimal point of its components (DSO, DSI, and DPO), which minimizes stock risk. This paper is also the first to assess the impact of WCM on stock risk of firms listed in European stock exchanges. The results are also relevant to managers, shareholders, and investors since they demonstrate that firms can minimize the risk of their stocks by practicing an optimal WCM.eng
dc.description.sponsorshipThis research was supported by National Funds of the FCT – Portuguese Foundation for Science and Technology within the project [UIDB/04928/2020].
dc.identifier.citationCoelho, T., Lisboa, I., & Oliveira, C. (2024). Is there an optimal working capital management that minimizes European stock risk?. European Journal of Applied Business Management, 10(1), 91-114.
dc.identifier.doi10.58869/EJABM
dc.identifier.issn2183-5594
dc.identifier.urihttp://hdl.handle.net/10400.8/14892
dc.language.isoeng
dc.peerreviewedyes
dc.publisherISAG - European Business School
dc.relationCentre of Applied Research in Management and Economics
dc.relation.hasversionhttps://nidisag.isag.pt/index.php/IJAM/article/view/743
dc.rights.uriN/A
dc.subjectWorking capital management
dc.subjectWCM
dc.subjectStock risk
dc.subjectCash conversion cycle
dc.subjectCCC
dc.subjectInventories
dc.subjectDSI
dc.subjectAccounts payable
dc.subjectDPO
dc.subjectAccounts receivable
dc.subjectDSO
dc.subjectEuronext
dc.subjectEurope
dc.titleIs there an optimal working capital management that minimizes European stock risk?eng
dc.typeresearch article
dspace.entity.typePublication
oaire.awardTitleCentre of Applied Research in Management and Economics
oaire.awardURIinfo:eu-repo/grantAgreement/FCT/6817 - DCRRNI ID/UIDB%2F04928%2F2020/PT
oaire.citation.endPage114
oaire.citation.issue1
oaire.citation.startPage91
oaire.citation.titleEuropean Journal of Applied Business Management
oaire.citation.volume10
oaire.fundingStream6817 - DCRRNI ID
oaire.versionhttp://purl.org/coar/version/c_970fb48d4fbd8a85
person.familyNameCoelho
person.familyNameLisboa
person.familyNamePatrício Valente de Oliveira
person.givenNameTiago
person.givenNameInês
person.givenNameCélia
person.identifier188655
person.identifier2201979
person.identifier.ciencia-idB417-8E58-EF75
person.identifier.ciencia-id5510-48F2-54DF
person.identifier.ciencia-id7514-4FAA-D288
person.identifier.orcid0000-0001-7847-2401
person.identifier.orcid0000-0003-2802-2589
person.identifier.orcid0000-0002-5413-1554
person.identifier.scopus-author-id56583916600
person.identifier.scopus-author-id55582040700
project.funder.identifierhttp://doi.org/10.13039/501100001871
project.funder.nameFundação para a Ciência e a Tecnologia
relation.isAuthorOfPublicationf3437f00-4623-4e10-b2b1-4143e4cd54da
relation.isAuthorOfPublicationd738c31a-5c43-42ad-8643-e7349164d0e4
relation.isAuthorOfPublication09fc30ec-ee6d-4ffb-a8dc-f25b60ccc43a
relation.isAuthorOfPublication.latestForDiscoveryf3437f00-4623-4e10-b2b1-4143e4cd54da
relation.isProjectOfPublication4c5aa29d-4b03-4713-8f40-08b3bbfd88d7
relation.isProjectOfPublication.latestForDiscovery4c5aa29d-4b03-4713-8f40-08b3bbfd88d7

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Is there an optimal working capital management that minimizes European stock risk?.pdf
Size:
653.91 KB
Format:
Adobe Portable Document Format
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.32 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

CARME - Artigos
ESTG - Artigos em revistas internacionais