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Sunderland Repository records the research produced by the University of Sunderland including practice-based research and theses.

Appeasing company owners through effective working capital management

Marttonen-Arola, Salla, Viskari, Sari and Kärri, Timo (2013) Appeasing company owners through effective working capital management. International Journal of Managerial and Financial Accounting, 5 (1). pp. 64-78. ISSN 1753-6715

Item Type: Article


In the dynamic financial climate of the present day, companies should be aware of the potential of effective working capital management in reacting to market transformations. It is important to include the company owner’s viewpoint in the research perspective. In this paper, we study the connection between working capital management and the return on equity. The managerial and financial perspectives of flexible asset management are integrated through analytical modelling. We conclude that the return on equity can be improved by shortening the cycle time of operational working capital. Both the interest rate of debt and the debt-to-equity ratio are taken into account in order to study the effects of dynamic financial conditions. Changes in the financial conditions could be compensated through effective management of working capital.

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Depositing User: Salla Marttonen-Arola


Item ID: 8175
Identification Number:
ISSN: 1753-6715
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ORCID for Salla Marttonen-Arola: ORCID iD

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Date Deposited: 17 Nov 2017 15:31
Last Modified: 20 May 2019 12:00


Author: Salla Marttonen-Arola ORCID iD
Author: Sari Viskari
Author: Timo Kärri

University Divisions

Faculty of Technology


Business and Management

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