Record Details

The Impact of Working Capital Efficiencies on the Enterprise Value Option: Empirical Analysis from the Energy Sector

Advances in Business Research

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Field Value
 
Title The Impact of Working Capital Efficiencies on the Enterprise Value Option: Empirical Analysis from the Energy Sector
 
Creator Lifland, Steven; High Point University
 
Subject Finance;
Working Capital; Enterprise Value; Energy Sector; Capital markets;
 
Description This paper, looking within the energy sector, empirically tests the hypotheses that individual and/or net working capital efficiencies impact a company’s enterprise value (EV). The EV metric is unique for it allows an equity investor to assess the firm on the same basis as an acquirer in a merger-acquisition transaction. It represents an option or ‘right’ to buy a firm’s core cash flow or the value of claims on that cash flow. The results show there are significant negative associations between the net working capital efficiencies and enterprise value for large and mid-cap firms. From the perspective of the investoracquirer, the acquisition cost of a company is directly impacted and it shows why they need to pay attention as to how well firms simultaneously turn over their inventories, collect on trade receivables, and service their trade creditors.
 
Publisher Tarleton State University and the University of Arkansas - Fort Smith
 
Contributor
 
Date 2011-12-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Articles
Quantitative/Archival;
 
Format application/pdf
 
Identifier http://journals.sfu.ca/abr/index.php/abr/article/view/51
 
Source Advances in Business Research; Vol 2, No 1 (2011); 57-70
 
Language eng
 
Relation http://journals.sfu.ca/abr/index.php/abr/article/view/51/33
 
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