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Determinants of cash conversion cycle in MENA countries

Ilker Yilmaz (Department of Accounting, Dhofar University, Salalah, Oman)
Haitham Nobanee (College of Business, Abu Dhabi University, Abu Dhabi, United Arab Emirates) (Oxford University, Oxford, UK)

Managerial Finance

ISSN: 0307-4358

Article publication date: 26 December 2022

Issue publication date: 22 June 2023




This study investigates the determinants of the cash conversion cycle (CCC in the Middle East and North Africa (MENA) countries).


Using the data of 395 companies from 10 countries in the MENA region for six years (2013–2018), the authors run dynamic panel regressions. The authors developed several models to examine the determinants of CCC and its components. The models included several control variables: firm, industry and country characteristics.


The results reveal that firm characteristics (e.g. operating cash flow, sales growth rate, operating profit margin, firm size and tangibility) affect CCC. The model in which CCC is a dependent variable produced more significant results than those which the components of CCC were dependent variables.

Practical implications

The findings suggest that corporate managers when making their working capital management decisions should pay equal attention to the components of CCC and develop a comprehensive working capital management policy.


To the best of the authors’ knowledge, this is the first study to examine determinants of CCC in the MENA context in both country and industry details.



Yilmaz, I. and Nobanee, H. (2023), "Determinants of cash conversion cycle in MENA countries", Managerial Finance, Vol. 49 No. 7, pp. 1148-1168.



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