Working capital management and firm sales growth: Evidence from fish processing industry

Working capital management (WCM) is a critical matter for the growth of firms, especially small and medium-sized manufacturing companies faced with liquidity shortages whose current assets account significant part their investments. These characteristics describe most in fish processing industry. Using sample more than 1050 European during period 2013–2020 applying dynamic panel data methods, this paper analyses extent to which working investment financing policies affect firm's sales growth. The empirical evidence reveals that trade credit channel (i.e., accounts receivable payable) enhances growth, while opposite effect found inventories. Additionally, findings insist on importance positive boost [EconLit Citations: C23, G31, L25, L79, Q22].