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The Impact of Economic and Financial Variables on Cash Conversion Cycle of Energy, Oil and Gas Sectors Listed in Muscat Security Market

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  • Faris Nasif AL-Shubiri

    (Department of Accounting and Finance, College of Commerce and Business Administration, Dhofar University, Sultanate of Oman.)

Abstract

This paper aims to analyze the impact of economic and financial variables on cash conversion cycle of energy, oil and gas sectors listed in Muscat Security Market. The study population include 13 firms from 2008 to 2013 listed in Muscat Security Market and only 3 firms exception because the lack of complete data covering the period of study as new firms. The results show that there is a statistical significant impact of growth sales, firm size, cash flow as financial variables and average daily production of oil, consumer price index, total merchandise import and total government expenditure as economic variables on cash conversion cycle. Also results show that there is a statistical significant impact of all financial factors on cash conversion cycle. The researcher recommends to reducing the proportion of crude oil s contribution to GDP and increasing the contribution of natural gas and diversifying the economy.

Suggested Citation

  • Faris Nasif AL-Shubiri, 2015. "The Impact of Economic and Financial Variables on Cash Conversion Cycle of Energy, Oil and Gas Sectors Listed in Muscat Security Market," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 174-181.
    • Handle: RePEc:eco:journ2:2015-01-14
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    References listed on IDEAS

    as
    1. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3‐4), pages 573-588, April.
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    3. Chaido Dritsaki & Melina Dritsaki, 2014. "Causal Relationship between Energy Consumption, Economic Growth and CO2 Emissions: A Dynamic Panel Data Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 125-136.
    4. Pedro Juan García‐Teruel & Pedro Martínez‐Solano, 2007. "Effects of working capital management on SME profitability," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 3(2), pages 164-177, April.
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    Cited by:

    1. Dalci, Ilhan & Ozyapici, Hasan, 2018. "Working capital management policy in health care: The effect of leverage," Health Policy, Elsevier, vol. 122(11), pages 1266-1272.
    2. Diana Andone & Gheorghe Fatacean & Paul Minteuan & Nicolae Petric, 2017. "Financial Equilibrium In The Energy Industry," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 555-562, July.
    3. Mukhtar Danladi Galadima & Abubakar Wambai Aminu, 2017. "Asymmetric cointegration and causality between natural gas consumption and economic growth in Nigeria," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2017(3), pages 59-71.

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    More about this item

    Keywords

    Energy; Oil and Gas Sectors; Cash Conversion Cycle; Economic and Financial Variables.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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