Working Capital and Financial Policy on Different Stages of Company's Life Cycle

Decisions in financial policy have an impact on working capital. After the global financial crisis of 2007-2009 and the crisis of the domestic economy in 2008-2010, it should be noted that a sufficient number of studies and researches by domestic and foreign authors has appeared about the influence of investment decisions on the firm’s working capital. To examine the working capital of Russian companies, six industries of the national economy were analyzed for the period from 2005 to 2015. Several hypotheses are considered, such as the negative relationship of working capital with financial leverage, firm size, the tangibility of assets, and the company's age, and the positive relationship with profitability, the cash conversion cycle, and the state of the economy, to identify coefficients of the determinants of working capital by using OLS regression. Revealed and verified hypotheses can help in prioritizing of the decision-making process in working capital management in order to improve the quality of management in the most significant and promising industries of the domestic economy. The obtained results of empirical research in financial management can help in further studies of factors and determinants, which are affecting the efficiency of working capital management.