Özet:
This study investigates relationship between working capital management and
financial performance. The study specially assessed the effects of working capital
management on financial performance has been measured by analyzing each item
under the working capital such as Cash management, Inventory and account
Receivables. The first objective was to examine the effect of cash management on
financial performance of organizations. Secondly to establish the effect of inventory
management and financial performance of organizations and thirdly to determine the
effect of Accounts receivables management and financial performance of
organizations. The study adopted a descriptive and correlation research design based
on survey where data have been obtained from 359 respondents quantitatively.
Regression analysis has been applied to reveal relationship between variables. In the
study working capital components are taken as independent variable while financial
performance indicators have been taken as dependent variable. Firstly, according to
findings, the study found that cash management had a 45.5% effect on financial
performance of organizations and this is statistically significant. The standard
estimate value of .70546 shows the closeness of data. The study results imply that
cash management has a statistically moderate effect on financial performance of the
capital markets in Turkish. Secondly the study found that inventory management
affect financial performance of the selected sample by 53.8%. The study results
imply that inventory management has a statistically moderate effect on financial
performance of the capital markets in Turkish. Thirdly it has been found out that
accounts receivables management affects financial performance of the selected
Turkish capital markets by 48.4%. Based on these findings, it can be claimed that it
has been found out that there is a statistically significant moderate effect of accounts
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receivables management on financial performance of organizations. Firstly, the study
concludes that in order to generate financial performance by 45.5% of the study, the
study conclude that cash management activities need to be developed in order to
generate the financial performance of Turkish companies. Secondly the study
concludes that the state of inventory management needs to be developed to enhance
the performance excellence in the selected capital markets in Turkish. The findings
obtained hence conclude that the inventory management is an ideal generator to the
financial performance of the companies. Thirdly it has been found out that accounts
receivables management affect financial performance of organizations. The state of
the accounts receivables hence needs to be improved, flexibility need to be
developed and enhancements need to be provided to the generation of the moderate
forms of the financial performance of the selected companies in Turkish. The study
recommends that for there is need for ensuring more accurate budget planning for the
projects. If budgets are prepared based on more conservative figures of estimates,
there would be greater consistency between actual disbursement and budget
projections. Cash disbursements need to be issued on the designed policy that is
appropriate for the organizational employees for the organizations. The study also
recommends for the need to develop a strong inventory policy aimed at generating
acceptable mechanisms for the management and control of the inventory. Finally,
there is need for development of effective inventory policies necessary in enhancing
the financial performance of the organizations. Financial health needs to be
generated thirdly to improve their financial performance there is need to increase the
leverage ratios currently present