How do market imperfections affect working capital management?

This paper examines whether Working Capital Management (WCM) is sensitive to market imperfections such as asymmetric information, agency conflicts or financial distress. We find that firms have a target investment in working capital and that they take decisions in order to achieve this. In addition, the results appear to support the hypothesis that the working capital competes with investment in fixed assets for the funds of the firms when they have financial constraints. Finally, we also find that WCM depends on bargaining power and other financial factors such as the availability of internal finance, cost of financing and access to capital markets. Este artículo analiza si la gestión del capital circulante está afectada por las imperfecciones de mercado tales como la asimetría informativa, los conflictos de agencia o las dificultades financieras. Los resultados muestran que las empresas tienen un nivel de inversión en capital circulante objetivo y toman decisiones con el fin de alcanzarlo. Además, los resultados parecen apoyar la hipótesis de que el capital circulante compite con los activos fijos por los fondos de las empresas cuando éstas tienen restricciones financieras. Finalmente, la gestión del capital circulante depende del poder de negociación y otros factores financieros tales como la disponibilidad de financiación interna, el coste de financiación y el acceso a los mercados de capitales.ciclo de efectivo, gestión del capital circulante, imperfecciones de mercado, datos de panel net trade cycle, working capital management, market imperfections, panel data

Superscaling Predictions for Neutral Current Quasielastic Neutrino-Nucleus Scattering

The application of superscaling ideas to predict neutral-current (NC) quasielastic (QE) neutrino cross sections is investigated. Results obtained within the relativistic impulse approximation (RIA) using the same relativistic mean field potential (RMF) for both initial and final nucleons -- a model that reproduces the experimental (e,e') scaling function -- are used to illustrate the ideas involved. While NC reactions are not so well suited for scaling analyses, to a large extent the RIA-RMF predictions do exhibit superscaling. Independence of the scaled response on the nuclear species is very well fulfilled. The RIA-RMF NC superscaling function is in good agreement with the experimental (e,e') one. The idea that electroweak processes can be described with a universal scaling function, provided that mild restrictions on the kinematics are assumed, is shown to be valid.Comment: 4 pages, 4 figures, published in PR

Determinants of working capital management

This paper analyzes the determinants of working capital management (WCM) for a sample of Spanish firms during the period 1997-2004. We find that firms have a target investment in working capital and that they take decisions in order to achieve this. The results appear to support the hypothesis that the working capital competes with investment in fixed assets for the funds of the firms when they have financial constraints. Finally, we also find that WCM depends on bargaining power and other financial factors such as the availability of internal finance, cost of financing and financial constraints.Research Agency of the Spanish Government ECO2008-06179/ECO

Kinematical relativistic effects in (e⃗,e′N⃗)(\vec{e},e'\vec{N}) reactions

Kinematical relativistic effects are analyzed within the plane-wave impulse approximation for outgoing nucleon polarized responses in coincidence electron scattering. Following recent approaches for non-relativistic reductions of the electromagnetic current operator, here an exact treatment of the problem for the transferred energy and momentum is presented. Rather than employing existing non-relativistic expressions for the single-nucleon matrix elements, in this work the response functions are expanded directly. Results are compared for different kinematical situations with the fully-relativistic PWIA calculation as well as with previous non-relativistic expansions. Off- and `on-shell' prescriptions are also studied in detail, and a systematic analysis of the various kinematical variables involved in the process is presented.Comment: Revised version, 45 pages, 16 figures, accepted in Nucl. Phys.

Financing of working capital requirement, financial flexibility and SME performance

This paper investigates the relation between the financing strategies of working capital requirement and firm performance for the period 1997 to 2012. Using the two-step generalized method of moments estimator, we find that a suitable financing strategy can help firms improve their performance. Moreover, the results indicate that the working capital requirement financing-performance relation changes during a financial crisis. Finally, we also find that this relation depends on a firm’s financial flexibility. The findings are of interest for managers and researchers and show that managers should not only be concerned about investing in working capital requirement but also consider how this investment is to be financed. To the best of our knowledge, this is the first paper to analyse how the financing strategy selected by firms to finance their working capital requirement affects their performance