Publication Date

12-25-2014

Document Type

Article

Disciplines

Corporate Finance

Comments

This article was published the International Journal of Economics and Finance. This work is licensed under a Creative Commons Attribution 3.0 License.

Abstract

This study examined the impact of independent directors on the cash conversion cycle of American manufacturing firms. A sample of 189 American manufacturing firms listed on the New York Stock Exchange (NYSE) for a period of five years (from 2009–2013) was used. The findings indicate that the presence of independent directors on the board of directors shortens the inventory period and cash conversion cycle of manufacturing firms. The study contributes to the literature on the factors that shorten the cash conversion cycle of the firm. The results may be used by financial managers and operations managers.

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