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Determinants of working capital behavior: evidence from Egypt

Amr Ahmed Moussa (Faculty of Commerce, Cairo University, Giza, Egypt)

International Journal of Managerial Finance

ISSN: 1743-9132

Article publication date: 19 February 2019

Issue publication date: 8 March 2019



The purpose of this paper is to empirically analyze and identify key factors affecting working capital behavior of companies listed on the Egyptian Stock Exchange.


Working capital requirement and cash conversion cycle were used to proxy working capital behavior. The study explored nine main factors widely discussed in previous research to explain working capital behavior: operating cash flow, growth opportunities, performance, firm value, age, size, leverage, economic conditions and industry type. The study employed a panel data analysis for 68 listed Egyptian industrial firms for the period 2000–2010. Different techniques of the generalized method of moments were used to test the validity of the research hypotheses.


The results show that working capital behavior is affected by various factors related to firm characteristics, economic conditions and industry type.


This study provides financial managers with a better understanding of the impact of different internal and macroeconomic factors on working capital behavior in an emerging market, such as Egypt’s.



Moussa, A.A. (2019), "Determinants of working capital behavior: evidence from Egypt", International Journal of Managerial Finance, Vol. 15 No. 1, pp. 39-61.



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