Working capital management and firm’s profitability: Evidence from Czech certified firms from the EFQM excellence model

Working capital management (WCM) is one of the most important decisions for all firms. The main components WCM are days sales outstanding (DSO), inventory (DIO), payable (DPO), and cash conversion cycle (CCC). Using a sample 332 Czech firms, including 20 certified firms from EFQM (European Foundation Quality Management) Model, current study explored effects on firms’ profitability. We used two different regression models to test hypothesis, i.e. pooled maximum likelihood estimation (MLE). findings research revealed have negative impact firm On other hand, interaction terms with showed positive profitability which means that there relationship between However, it examined quality certificate/award Excellence Model decreases firm’s outcomes will be beneficial academics, managers, leaders, directors improve their