An Empirical Investigation of the Cash Conversion Cycle of Small Business Firms

Abstract

An Empirical Investigation of the Cash Conversion Cycle of Small Business Firms. In this study, the distribution of CCC for all industries was examined by a residual analysis and was found to satisfy the assumption of normality and independence of error. However, based on a regression of the cash conversion cycle against the current and quick ratios, the assumptions of linearity and equality of variance are violated. The results indicate A positive and significant relationship between the CCC and RCP is observed, Surprisingly, there is a significant and negative relationship between the CCC and ICP. Finally, a significant and negative association of CCC with PDP is found as expected.