Evidence From A Developing Economy On The Effectiveness Of Working Capital And Quality Management Systems

Abstract

Argentine manufacturing enterprises' profitability will be examined in this paper utilising the literature's primary theoretical framework for investigating the impact of working capital management. In industrialised economies, this issue has been studied
extensively, but this issue has received scant attention in emerging economies. A stratified selection method was used to choose the companies to be studied based on an economic criterion. The information was gathered through a questionnaire and spans three years. We employed a fixed effects regression model to meet our study objectives, which showed accuracy in explaining the impact of working capital management on profitability. ' As a result of the findings, it can be deduced that an increase in any one of the variables examined leads to a rise in ROA and ROE. On the other hand, there is a statistically significant negative correlation between leverage and profitability when it comes to profitability.