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Net Working Capital Strategy Influencing Beta Coefficient based on Companies Listed on Newconnect Alternative Exchange in Warsaw

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  • Bolek Monika

    (Faculty of Economics and Sociology, University of Lodz)

Abstract

The goal of this paper is to present the net working capital strategies relationship with the systematic risk ratio, namely beta coefficient, that is a measure of a stock’s volatility in relation to the market. The strategy of financing assets reflected in net working capital is influencing the financial liquidity policy and the risk of the company thereafter. Decisions and strategies that are performed by management are assessed by investors when a company is listed on the exchange and should be reflected in share price volatility. The survey is based on quantitative analysis of NewConnect non-financial company data. The results of the analysis show that the relationship between net working capital indicators and beta coefficient is negative.

Suggested Citation

  • Bolek Monika, 2019. "Net Working Capital Strategy Influencing Beta Coefficient based on Companies Listed on Newconnect Alternative Exchange in Warsaw," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 15(2), pages 36-47, June.
    • Handle: RePEc:vrs:finiqu:v:15:y:2019:i:2:p:36-47:n:4
    DOI: 10.2478/fiqf-2019-0010
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    References listed on IDEAS

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    4. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, September.
    5. GRZEGORZ MICHALSki, 2016. "Risk Pressure and Inventories Levels. Influence of Risk Sensitivity on Working Capital Level," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(1), pages 189-196.
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    More about this item

    Keywords

    net working capital; beta; risk;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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