Impact of Working Capital on Financial Performance of Small and Medium- Sized Enterprises in Vietnam
Doan Thanh Ha, Bui Dan Thanh, Hoang Thi Thanh Hang

The paper analyzes the impact of working capital on financial performance of the small and medium-sized enterprises in Vietnam. Using panel data for 1,209 enterprises in the period from 2008 to 2015, with OLS method, REM and FEM, the paper finds that receivables and working-capital turnover impact negatively on financial performance of enterprises. Meanwhile, accounts payable period and inventory conversion period have a direct relationship with corporate financial performance. In addition, the results of the study also find that the growth rate, size, and age of enterprises also affect financial performance directly.

Full Text: PDF     DOI: 10.15640/rcbr.v5n1a13