Macroeconomic factors, working capital management, and firm performance—A static and dynamic panel analysis

Abstract The aim of the study is to explore interaction effect macroeconomics indicators, and working capital flows on financial performance in a developing economy. By using static dynamic approach panel analysis, it has been shown that there relationship between components gross profit cash conversion duration. Second, while interest rates used as an variable with average payable days have adverse effects, firm would decrease if increase. duration extends; instead primarily regressing, period positively correlates performance. cycle negative relationship, but reverses its actions after rate interaction. There simple regression exchange second cycle, positive effects. In addition, gets higher increase length, will be increased. This receives new results, increases, companies can pay early get significant role changing