Abstract:

In the study, after the announcement of the definition of working capital, the element,the crisisin the historical processand the factors affecting working capital requirement are examined. The aim of the studyis to appraise of crisis effects to working capital requirement and to make suggestions on working capital management,Turkey in particular, in the light of this appreciations. In the study, 11 years period, between the years of 2004-2014, including the years affected by 2008 Crisis, are taken into account for the 114 manufacturing firms. In this study, the affections of 2008 Global Crisis to the working capital requirement in consideration of working capital elements. Panel data regression model is made by using variables like liquidity ratios, profitability ratios, turnover ratios, financial leverage and dummy variable for crisis. As a result, the current ratio, liquidity ratio, inventory turnover period, the cash cycle, return on assets, profitability of current assets, short-term debt / total assets, short-term debt / total debt and crisis variable’s effects on net working capital / total assets are statistically significant. Accordingly, it has seen that net working capital is decreased during the crisis and working capital management for businesses in the manufacturing industry is becomed difficult. As a result, the importance of working capital management for businesses in crisis is underlined.

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