Working Capital Management during and after the Global Financial Crisis. Evidence from Germany

Bachelorarbeit , 2015 , 122 Seiten , Note: 1,3

BWL - Investition und Finanzierung

The present thesis tries to figure out, if the Working Capital Management of German companies is reactive to changing interest rates for their refunding or if it is really a pro-active improvement since the beginning of the 2000s as claimed by the literature. After a theoretical definition of Working Capital, its functions, goals and its relationship to the management process, Working Capital will be set into a context of company crises to lead to the central object of investigation, the Global Financial Crisis. With a quantitative analysis via DataStream of the companies currently listed in the DAX, MDAX and SDAX (N=130) it will be examined, if the credit crunch for companies in the Global Financial Crisis and the easy refunding possibilities afterwards due to the easy money policy of the European Central Bank had effects on the quality of the Working Capital Management. The analysis of the data via SPSS will show, that the possibilities of refunding indeed influence this quality, whereby the intensity of the reactionary behaviour of the companies depends mainly on the object of cognition, which is in this thesis examined by the parameters size, age and industry sectors, so that the results could serve as a basis for further management research.

Inhaltsverzeichnis (Table of Contents)

• 1 Introduction
• 2 Literature Review
  • 2.1 Object of Working Capital Management
    • 2.1.1 Working Capital
    • 2.1.2 Management
    • 2.1.3 Working Capital Management
  • 2.2 Company Crises
    • 2.2.1 Crisis Process
    • 2.2.2 Crises Causes
    • 2.2.3 Early Detection and Intervention
  • 2.3 Working Capital Management during Crisis
    • 2.3.1 Working Capital Management as a Cause, Indicator and Counteragent
    • 2.3.2 Working Capital Management during the Global Financial Crisis
    • 2.3.3 Working Capital Management after the Global Financial Crisis
• 3 Methodology
• 4 Results of Empirical Research
  • 4.1 Overall Results
  • 4.2 Special Observations regarding the Object of Cognition
    • 4.2.1 Industry Sectors and the Relationship to Working Capital Management
    • 4.2.2 Company's Size and the Relationship to Working Capital Management
    • 4.2.3 Company's Age and the Relationship to Working Capital Management
• 5 Discussion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis aims to investigate the impact of the global financial crisis on working capital management in German companies. It examines the relationship between working capital management practices and company performance during and after the crisis, considering factors such as industry sector, company size, and age.

• The role of working capital management in mitigating the impact of crises
• The influence of the global financial crisis on working capital management practices
• The relationship between working capital management and company performance during and after the crisis
• The impact of industry sector, company size, and age on working capital management practices
• The effectiveness of working capital management strategies in the context of economic uncertainty

Zusammenfassung der Kapitel (Chapter Summaries)

The first chapter introduces the topic of working capital management and its significance in the context of economic crises. Chapter two provides a comprehensive literature review, exploring the theoretical framework of working capital management, company crises, and the impact of crises on working capital management practices. Chapter three outlines the methodology employed for the empirical research, including the data sources and analysis techniques. Chapter four presents the results of the empirical study, focusing on the overall findings and specific observations regarding industry sectors, company size, and age. Chapter five discusses the implications of the research findings, drawing connections to the existing literature and highlighting the practical relevance of the study. The conclusion summarizes the key findings and offers a forecast for future research directions.

Schlüsselwörter (Keywords)

This thesis focuses on working capital management, financial crises, company performance, industry sectors, company size, and age. It examines the impact of the global financial crisis on working capital management practices in Germany, drawing on empirical data and insights from the relevant literature.

• Hochschule: Leuphana Universität Lüneburg (Institut für Bank-, Finanz- und Rechnungswesen (IBFR))
• Veranstaltung: Bachelorkolloquium
• Note: 1,3
• Autor: Christopher Thees (Autor:in)
• Erscheinungsjahr: 2015
• Seiten: 122
• Katalognummer: V310122
• ISBN (eBook): 9783668085299
• ISBN (Buch): 9783668085305
• Sprache: Englisch
• Schlagworte: working, capital, management, global, financial, crisis, evidence, germany