Working capital management in the food and beverage industry: Evidence from listed European companies

Özkaya H., Yasar S.

AGRICULTURAL ECONOMICS-ZEMEDELSKA EKONOMIKA, vol.69, no.2, pp.78-88, 2023 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 69 Issue: 2
  • Publication Date: 2023
  • Doi Number: 10.17221/383/2022-agricecon
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, Agricultural & Environmental Science Database, CAB Abstracts, Food Science & Technology Abstracts, Veterinary Science Database, Directory of Open Access Journals
  • Page Numbers: pp.78-88
  • Dokuz Eylül University Affiliated: Yes


Optimizing current assets and their financing resources is of great importance for firms to sustain their ex-istence with the highest level of profitability. However, empirical evidence from the food and beverage industry on the effects of working capital management (WCM) on profitability is scarce and mixed. This study aims to understand how various components of WCM affect the profitability of listed European food and beverage (F&B) companies. For this purpose, static panel data methodology was used to test the relationship between profitability and WCM measured by the cash conversion cycle and its components. The results were checked for robustness by using dynamic panel data methodology. Our results indicate a negative relationship between profitability and the cash conversion cycle. Unlike previous studies that have analysed a single country, this study provides evidence based on analyses of the largest pos-sible sample of listed European F&B companies.