Working Capital Management and Level of Countries’ Corruption: A Panel Study of ASEAN Countries

This paper aims to clarify the relationship between working capital management and the level of countries’ corruption. This study uses a large panel sample of five ASEAN countries; Malaysia, Indonesia, Singapore, Thailand, and the Philippines over the period 2005–2017 using Ordinary Least Squares (OLS) estimators. The results indicate that the length of the cash conversion cycle will decrease as a result of increasing the level of corruption indexes. Meanwhile, a high level of corruption indexes forces the managers for the sample firms decrease the level of investment in cash equivalents and cash.