Effect of working capital management on firm's profitability; A study on manufacturing which firms listed on İstanbul Stock exchange

The working capital management has an important role regarding continue with featly of firm's activity specially on the liquidity. The study based on data collected from 205 manufacturing firms listed on Istanbul Stock Exchange Market for the period 2010 – 2014 in an attempt to investigate the effects of working capital management on firm's profitability by using panel data analysis. Throughout the study, liquidity factor has an important role the effects of working capital management. The results indicate that firm's cash conversion cycle effect of gross operating profit at level of 1% or as negative. That mean, firm can use to firm's cash conversion cycle and increase firm value with effectively strategy. Financial leverage and firm size a control variables has not significant effect on the gross operating profit. Key Words: Panel Data Analysis, Manufacturing Firms, Firm Profitability, Gross Operating Profit, Firm Size, Cash Conversion Cycle