Working Capital and Financial Performance in the Energy Sector of Saudi Arabia: Moderating Role of Leverage

Abdul Rahman Shaik; Anis Ali; Ibtisam Dhuwayhi Alanazi

doi:10.32479/ijeep.14254

Working Capital and Financial Performance in the Energy Sector of Saudi Arabia: Moderating Role of Leverage

Abdul Rahman Shaik, Anis Ali, Ibtisam Dhuwayhi Alanazi

Prince Sattam Bin Abdulaziz University

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

The current study examines the effect of working capital (measured in terms of current ratio on firm performance in the listed firms of Saudi Arabian energy sector during the period starting from 2012 to 2019. A pooled and panel data model was used to analyze the extracted data. The findings indicate that working capital has a considerable beneficial impact on company performance and that leverage has a significant negative impact. Even after moderating by an interaction variable, working capital still has a substantial negative influence on corporate performance.

Original language	English
Pages (from-to)	158-163
Number of pages	6
Journal	International Journal of Energy Economics and Policy
Volume	13
Issue number	3
DOIs	https://doi.org/10.32479/ijeep.14254
State	Published - 17 May 2023

Keywords

Energy Sector
Firm Performance
Leverage
Moderation
Working Capital

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abstract = "The current study examines the effect of working capital (measured in terms of current ratio on firm performance in the listed firms of Saudi Arabian energy sector during the period starting from 2012 to 2019. A pooled and panel data model was used to analyze the extracted data. The findings indicate that working capital has a considerable beneficial impact on company performance and that leverage has a significant negative impact. Even after moderating by an interaction variable, working capital still has a substantial negative influence on corporate performance.",

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AU - Shaik, Abdul Rahman

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PY - 2023/5/17

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N2 - The current study examines the effect of working capital (measured in terms of current ratio on firm performance in the listed firms of Saudi Arabian energy sector during the period starting from 2012 to 2019. A pooled and panel data model was used to analyze the extracted data. The findings indicate that working capital has a considerable beneficial impact on company performance and that leverage has a significant negative impact. Even after moderating by an interaction variable, working capital still has a substantial negative influence on corporate performance.

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KW - Firm Performance

KW - Leverage

KW - Moderation

KW - Working Capital

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IS - 3

ER -

Working Capital and Financial Performance in the Energy Sector of Saudi Arabia: Moderating Role of Leverage

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Keywords

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