Analysis of Corporate Efficiency and Shareholder Return

Open Access
Knoll, Ryan E
Area of Honors:
Finance (Behrend)
Bachelor of Science
Document Type:
Thesis Supervisors:
  • Michael Filbeck, Thesis Supervisor
  • Michael Filbeck, Honors Advisor
  • Xin Zhao, Faculty Reader
  • Working Capital
  • Working Capital Management
  • Corporate Efficiency
Since 1996, CFO Magazine has published a list of 1,000 companies in its “Working Capital Scorecard.” In this paper, we examine the cumulative performance of companies’ stock for a six-year period. We analyze their performance against the S&P 500 index and on a risk-adjusted basis. We find a statistically significant difference in the returns of the whole sample portfolio as well as the top 25 percent of the working capital efficient companies, showing higher returns for a potential investor. We find no clear patterns which serve as a driver of the portfolio performance taking into account a possible announcement effect, firm size, book value, and stock price momentum.