Proceedings of the 2026 5th International Conference on Social Sciences and Humanities and Arts (SSHA 2026)

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The Impact of Working Capital Management Efficiency on Corporate Financial Performance: A Panel Data Regression Analysis

Authors
Jianbu Shi1, *, Hairong Zhang2, Jinghan Zhou3, Lan Tang4
1Johns Hopkins University, Washington, DC, 20001, USA
2University of Southern California, Los Angeles, CA, 90089, USA
3Brown University, Providence, RI, 02912, USA
4Trine University, Allen Park, MI, 48101, USA
*Corresponding author. Email: jianbu.shi@gmail.com
Corresponding Author
Jianbu Shi
Available Online 15 May 2026.
DOI
10.2991/978-2-38476-577-5_137How to use a DOI?
Keywords
working capital; cash cycle; profitability; panel regression; emerging markets
Abstract

This study explores the relationship between working capital management (WCM) efficiency and corporate financial performance using panel data from 1,200 non-financial listed firms across 10 emerging economies (Brazil, Russia, India, China, South Africa, Indonesia, Mexico, Turkey, Thailand, and Malaysia) during 2016–2021. WCM efficiency is measured by Cash Conversion Cycle (CCC), Inventory Conversion Period (ICP), Accounts Receivable Period (ARP), and Accounts Payable Period (APP), while financial performance is proxied by Return on Assets (ROA) and Return on Equity (ROE). Panel data regression models (fixed effects and random effects) are employed, with instrumental variable regression and robustness checks addressing endogeneity. The results show a significant negative correlation between CCC, ICP, ARP and financial performance, while APP has a positive yet marginally significant effect. Specifically, a one-day reduction in CCC increases ROA by 0.032% and ROE by 0.057%. These findings enrich the literature with cross-country evidence from emerging markets and offer practical implications for managers, investors, and policymakers.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2026 5th International Conference on Social Sciences and Humanities and Arts (SSHA 2026)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
15 May 2026
ISBN
978-2-38476-577-5
ISSN
2352-5398
DOI
10.2991/978-2-38476-577-5_137How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jianbu Shi
AU  - Hairong Zhang
AU  - Jinghan Zhou
AU  - Lan Tang
PY  - 2026
DA  - 2026/05/15
TI  - The Impact of Working Capital Management Efficiency on Corporate Financial Performance: A Panel Data Regression Analysis
BT  - Proceedings of the 2026 5th International Conference on Social Sciences and Humanities and Arts (SSHA 2026)
PB  - Atlantis Press
SP  - 1350
EP  - 1355
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-577-5_137
DO  - 10.2991/978-2-38476-577-5_137
ID  - Shi2026
ER  -