Evaluating the Effect of Firm Characteristics on Working Capital Behavior

Abstract

This study aims to investigate the relationship between firm characteristics and working capital behavior. The sample is 78 non-financial companies listed in the EGX 100 the sample was finalized in 55 companies due to missing data in 23 companies. The findings of this study show that operating cash flow, leverage, firm performance and firm age had a significant impact on working capital. Additionally, growth opportunities, firm value, firm size and economic conditions had an insignificant impact on working capital. Certain limitations are discussed in the study with offering suggestions for future researchers. Further, the authors offer decision- makers plenty of recommendations. Lastly, this study contributes to the existing body of literature by filling the existing empirical research gap.