Abstract

The aim of this study is to determine the factors that affect working capital management in Latin American companies. Using an unbalanced panel data analysis for companies quoted in five Latin American capital markets it is shown that companies in Argentina, Brazil, Chile and Mexico are holding cash excesses, which could destroy firm value. Results show that the industry cash conversion cycle, the company market power, its future sales and country risk have an influence on the way Latin American companies manage their working capital with significant differences among countries in the region.

Details

Title
Determinants of Working Capital Management in Latin American Companies
Author
Mongrut, Samuel; Darcy Fuenzalida O'Shee; Claudio Cubillas Zavaleta; Johan Cubillas Zavaleta
Pages
5-17
Section
GESTIÓN Y ORGANIZACIÓN
Publication year
2014
Publication date
2014
Publisher
Universidad Nacional de Colombia
ISSN
01215051
e-ISSN
22486968
Source type
Scholarly Journal
Language of publication
Spanish
ProQuest document ID
1677176914
Copyright
Copyright Universidad Nacional de Colombia 2014