Working Capital Management in Czech SMEs: An Econometric Approach

In this paper we investigate the relationship of working capital management and corporate profitability on a sample of Czech small and medium firms. Capital structure and working capital management are two areas widely investigated by economicresearchers in order to investigate forces determining profitability of firms. We use an initial sample of 3053 Czech SMEs for the period of 2009-2012 and we employ the panel data methodology to find whether there is the statically significant relationship between profitability and components of working capital ?mainly inventories, receivables and payables and other variables based on the previous literature.