Abstract :
The purpose of this study is to investigate the firm specific factors affecting working capital. For this purpose, in the study, the data set of 145 manufacturing industries in BIST over the period 2003-2012 is used. The period is divided into fullsamples and two sub-samples which are pre-crisis (2005-2007) and post-crisis (2008-2012). In order to determine the relationship between dependent variable (current assets/total assets) and independent variables (cash conversion cycle, size, return on equity, current ratio) Prais-Winsten regression is performed. Emprical findings of the study points out that, there are a statistically positive significant relationship between dependent variable and cash conversion cycle, size, and current ratio, but there isn’t with return on equity in 2003-2012 period and 2008-2012 period. Cash conversion cycle can show a statistically significant relationship with dependent variable, but size, return on equity, current ratio can not show a statistically significant relationship with dependent variable in 2003-2007 period. Morever, relationship between dependent variable and independent variables change in 2003-2012, 2003-2007, and 2008-2012 period. In this reason, that is concluded that the 2008 crisis affected the relationship between dependent variable and independent variables.
NaturalLanguageKeyword :
Working capital , working capital requirement , the firm specific factors , Prais , Winsten regression
