TITLE:
AUTHORS:
Israel Odion E. Idewele (PhD), Obasi Ama Ibiam (PhD), Udochukukwu Chikaodili Nkemdilim, Eke Chukwuma Nnate (PhD), Udoka Stephen Otika, Promise Nwakaego Edeogu (PhD), Samuel N. Nwosu (PhD)
Page: 76-92 Vol: 20 Issue: 06 Year: 2025
ABSTRACT
Uncertainty in financial coverage is undoubtedly regarded as one of the numerous factors that could impact the relationship between operating capital and profitability. The EPU can lead to greater uncertainty in the business environment, which can affect a company’s ability to effectively manage its working capital. This study investigates the extent Our study’s objective is to determine how the UK’s financial coverage uncertainty (EPU) index,The Fixed Effect Method, Random Effect Method, and two-level Generalized Method of Moments (GMM) to analyze the records for 199 UK production companies Methodology: Fixed Effect Method, Random Effect Method, and two-level Generalized Method of Moments (GMM) was used to analyze the records for 199 UK production companies in order to solve the endogeneity issue and reliable results. Results: The results of the analysis showed that financial coverage uncertainty (EPU) had a statistically significant impact on the relationship between Cash conversion cycle (CCC) and profitability. Conclusion :Working capital is typically a significant investment for companies. Contribution: Companies need make sure they have the liquidity they need to fulfill their immediate obligations, they should concentrate on streamlining their working capital management procedures.
Keywords:
working capital management, cash conversion cycle, economic policy uncertainty, return on operating assets, UK non- financial firms
Received: 27 March 2025
Accepted: 19 May 2025
Published: 17 June 2025