Creative Commons

This dissertation was written as part of the MSc in Banking & Finance at the International Hellenic University. My dissertation project is based upon the relationship between factors that affect crucially the majority of firms, about their effectiveness and profitability. The ability to use in the most proficient way the sources that any firm can gather, is undoubtedly a critical matter to investigate, especially in our current global economic situation, which is characterized with rapid and large fluctuating movements. Working capital management and cash conversion cycle elements’ handling is the prominent study of this research, in order to establish their connection with corporate profits. Previous studies accompanied by several evidences, provide us an insight or a perception that alternative working capital management, lead to significantly distinct financial outcomes in the short-run, also in proportion to different economic environments and circumstances. This issue will add another level in the current bibliography as the scope of this effort is focused on the deliberation of each U.S. S&P 500 sector (2009-2018) and the influence that CCC manipulation can have in the profits of any firm included in. Moreover, findings intensify up-to date literature, as there is negative correlation between variables with weak statistical significance for the whole sample, presenting stronger results for particular segments of U.S. market. As a result managers of companies that belong in these sectors should pay a closer look in their working capital management, maintaining components of CCC to an appropriate level, in order to enhance their profitability.