@Article{mfj:1728,
title={Working Capital Investment: A Comparative Study - Canada Versus The United States},
author={Abdul Rahman Khokhar},
journal={Multinational Finance Journal},
volume={},
number={},
pages={--},
year=,
publisher={Multinational Finance Society; Global Business Publications},
url={http://www.mfsociety.org/}
keywords={},
abstract={This study empirically compares the working capital investment of Canadian and U.S. industrial firms and finds that Canadian firms invest less in working capital compared to their U.S. counterparts. Matched samples of 8627 firm-year observations each from Canada and the U.S. are utilized covering the period 1988 to 2016. Compared to their U.S. counterparts, Canadian firms have a significantly lower cash conversion cycle, non-cash working capital to asset ratio and non-cash working capital to sales ratio. The difference in working capital investment is robust to variety of firm, industry and country controls as well as to year and industry fixed effects. Finally, we investigate the determinants of the lower investment in working capital by Canadian firms and find that working capital investment is positively associated with short-term interest rates and negatively associated with multinational operations..},
}