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This study aims to explore the relative efficiency of the working capital management (WCM) for Emirati firms before and during the coronavirus crisis. Next, this study explores the potential impact of WCM on the likelihood of financial distress.

A data envelopment analysis (DEA) was applied to assess the relative efficiency of the WCM. This study uses the emerging market Z-score model to predict the likelihood of financial distress. The logistic regression was applied to investigate the impact of the efficiency of WCM on firms’ financial distress.

The results of this study model showed a negative and significant influence of the efficiency of WCM on firms’ financial distress likelihood.

The findings have important implications for many stakeholders, including decision makers, WC managers, financiers, investors, financial consultants, researchers and others …