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


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Authors

  • Abdul Rahman Shaik College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia.
  • Anis Ali College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia
  • Ibtisam Dhuwayhi Alanazi College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia

DOI:

https://doi.org/10.32479/ijeep.14254

Keywords:

Working capital, firm performance, leverage, moderation, energy sector

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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Author Biography

Abdul Rahman Shaik, College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia.

Abdul Rahman is an Assistant Professor in the College of Business Administration at Prince Sattam Bin Abdulaziz University in Al Kharj, Saudi Arabia. His area of specialization includes corporate finance, market micro-structure, financial accounting, managerial accounting, etc. He has published research papers in journals of repute.

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Published

2023-05-17

How to Cite

Shaik, A. R., Ali, A., & Alanazi, I. D. (2023). Working Capital and Financial Performance in the Energy Sector of Saudi Arabia: Moderating Role of Leverage. International Journal of Energy Economics and Policy, 13(3), 158–163. https://doi.org/10.32479/ijeep.14254

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