**6. Conclusion**

**Variables Augmented** 

**Dickey-Fuller**

200 Financial Management from an Emerging Market Perspective

**Table 6.** Stationarity tests of variables.

**Table 7.** Hausman test results.

**Dependent variable ROA**

Sample number 136

**Adj.** 0.712325 **F-statistic** 13.20995 **Prob. (F-statistic)** 0.000000 **Durbin-Watson** 1.725998

**Table 8.** Panel data analysis results.

Method Panel fixed effect model

Sample period 2009Q4–2015Q3

**Im, Pesaran, and Shin W-stat Phillips-Perron Levin, Lin, and Chu**

**t-Statistic p-Value t-Statistic p-Value t-Statistic p-Value t-Statistic p-Value**

**Correlated random effects (Hausman test)**

Test summary Chi square statistic Chi square f. Prob. Cross-sectional random 30.041109 6 0.0000

**Variable Coefficient Std. error t-Statistic Prob. C** 48.21348 4.341295 11.10578 0.0000 Size −16.72289 1.451334 −11.52243 0.0000 Lev −0.031608 0.338043 −0.093504 0.9257 Growth 0.339326 0.745787 0.454990 0.0050 CCC −0.363589 0.357237 −1.017780 0.3109 ACPR −0.047350 0.188328 −0.251424 0.8019 INPV 1.366229 0.338755 4.033088 0.0001

ROA −6.748 0.0000 −6.943 0.0000 9.442 0.0000 −6.754 0.0000 Size −4.839 0.0000 −3.898 0.0000 7.3447 0.0000 −4.839 0.0000 Lev 5.980 0.0000 −6.280 0.0000 5.6167 0.0000 −2.418 0.0000 Growth 11.980 0.0000 −11.700 0.0000 7.538 0.0000 −7.408 0.0000 CCC 5.5775 0.0000 −9.794 0.0000 5.469 0.0000 −7. 951 0.0000 ACPR 9.616 0.0000 −9.214 0.0000 11.569 0.0000 −9.987 0.0000 NPV 3.935 0.0000 −9.400 0.0000 5.872 0.0000 −8.707 0.0000

> The significance of working capital management has increased even more in developing countries with insufficient capital accumulation after the global financial crisis. The researches reveal that companies that are operating in developing countries and succeed in working capital management are affected less in financial crisis. This study empirically investigated the relationship between working capital components and profitability of a sample of six mining sector firms quoted on Istanbul Stock Exchange (ISE) for the period from 2009Q4 to 2015Q3. The independent variables are size (firm size), Lev (leverage), growth (firm growth in sales), CCC (cash conversion cycle), ACRP (accounts receivables period), and INVP (inventory period). The dependent variable of this study is ROA (return on assets) that represents firm profitability.

> The results of regression analysis show that growth (firm growth in sales) and INVP (inventory period) affects ROA (return on assets) positively, while size (firm size) affects firm profitability negatively. The other independent variables included in the regression model Lev (leverage), CCC (cash conversion cycle), and ACRP (accounts receivables period) have no statistically significant effects on firm profitability for mining sector in Turkey.

> The whole results of study can be disclosed step by step. The positive relationship between INVP (inventory period) and ROA (return on assets) can be explained by the companies' tendency of holding more stocks from 2009 to 2015 that indicates the post crisis period. In this period, it is considered that mining firms invested in stocks to protect against the increases in stock price or aimed to earn by possible increases in stock price.

> Other positive relations are found between growth (firm growth in sales) and ROA (return on assets). Firms especially in developing countries tend to credit sale in the post crises period in order to increase sales amounts. As a result, because of this reason, sales amounts are growing compared to the previous period. Growth in sales leads to more efficient use of firms' assets, and in this case, it can affect its profitability in a positive way.

There is a negative relationship between size (firm size) and ROA (return on assets) in this study. As the firm size increases, assets are growing, and more resources are allocated to the assets. It is considered that cost of financing resulting from the increase of investment amount to current and fixed assets has a negative effect on return on assets.

The study was conducted only taking into account internal factors related to the firms. In the future studies, external factors (general economic situation, inflation, etc.) can be taken into account. If the data of firms operating in mining sectors, which are nonpublic companies, are found reliably, analyses can be applied on a wider sample.
