Relations Strategies of Working Capital Management in European Companies from the IT Sector

The article covers important issues related to working capital. The main scientific objective of this paper is to analyze the strategies of working capital management used by joint stock companies listed on the chosen European stock exchanges. The insight into the types of financing strategies for the business, i.e., aggressive, matching and conservative strategy have been done from the theoretical and practical point of view. Finally, the analysis of relation between the value of the enterprise and the strategy of WCM was conducted. The research proves the weak but positive direction of relationships between enterprise value and two variables describing the strategy of working capital management, i.e. net working capital and fixed capital to fixed assets ratio. Moreover, the vast majority of audited companies applies the conservative strategy of working capital management.