The relationship between cash conversion cycle and profitability in Italian companies. A comparison between family and non-family businesses

• Autor(a) principal: Litta, Riccardo
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/151980
• topic: Family business; Cash conversion cycle; Financial statement analysis; Profitability; Days inventory outstanding; Days sales outstanding; Liquidity; Workin capital; Gross sales margin; Days payables outstanding; Debt-to-equity; Ftse Italia star; Stewardship; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

Academic research agrees on the outperforming profitability and the closer relationship with suppliers and customers, attributable to Family Business (FBs) compared to Non-FBs. This Work Project is aimed at understanding whether these characteristics still exist in Italian listed manufacturing FBs. Furthermore, this paper investigates how the differences in Cash Conversion Cycle components between FBs and Non-FBs impact profitability. Our findings suggest that FBs generate a higher Gross Sales Margin than Non-FBs by taking advantage of their relationship with suppliers. Specifically, FBs obtain lower input prices and longer payables periods than Non-FBs, while reducing variable costs through a longer inventory turnover.