Cash conversion cycle and financial performance: evidence from manufacturing firms of Bangladesh

Purpose The purpose of the present study is to determine how cash conversion cycle (CCC) affects financial performance manufacturing companies in Bangladesh. Design/methodology/approach authors have collected data 61 Dhaka Stock Exchange (DSE)-listed firms from 10 distinct industries Bangladesh for 18 years, 2003 2020. been analyzed through two-steps system generalized method moment (GMM) regression model, using profitability indicators return on asset (ROA) and earnings per share (EPS) as dependent variables, while CCC has used independent variable, whereas turnover (ATO) leverage (LEV) were control variables assess relationship between performance. Findings findings indicated that a negative connection with – ROA EPS, EPS being highly significant. This indicates reducing inventory time, period receivable collection making payments creditors potential delays might help Bangladeshi boost their profitability. In addition, firm-specific characteristics, namely ATO LEV significantly affect firm's Research limitations/implications research was based only secondary sources information scarce. conducted impact corporate sector solely. There be many other working capital are still unexplored this study. Practical implications current study's consistent traditional rule minimizing days may optimize results added existing body knowledge topic management (WCM). Future endeavors can initiated assessing industrial sectors or identify much Originality/value an original work researchers adds value literature domain WCM first one covers all managers, creditors, investors concerned stakeholders will benefited