CAPITAL ASSETS MANAGEMENT OF PAKISTAN COMPANIES
Keywords:
quick ratio, working capitalAbstract
The current study investigates the effect of working capital management on a company's performance, taking into account the moderating role of ownership structure. Utilizing a fixed-effect model, the research found a notable negative relationship between leverage, average collection period, and quick ratio with firm performance, while current ratio, accounts payable, and inventory turnover positively influenced performance. Therefore, it is suggested that owners and managers optimize their resource management to improve profitability. Furthermore, investors and shareholders are advised to consider the extent of institutional and managerial ownership when making investment choices.
References
Azam, M., & Haider, S. I. (2011). Impact of
working capital management on firms’
performance: evidence from non-financial
institutions of KSE-30 index. Interdisciplinary
journal of contemporary research in business,
(5), 481-492.
Bagh, T., Nazir, M. I., Khan, M. A., Khan, M.
A., & Razzaq, S. (2016). The impact of
working capital management on Firms
Financial Performance: Evidence from
Pakistan. International Journal of Economics
and Financial Issues, 6(3), 1097-1105.
Baños-Caballero, S., García-Teruel, P. J., &
Martínez-Solano, P. (2012). How does
working capital management affect the
profitability of Spanish SMEs? Small Business
Economics, 39(2), 517-529.
Deloof, M. (2003). Does working capital
management affect profitability of Belgian
firms? Journal of business finance &
Accounting, 30(3-4), 573-588.
Fazzari, S. M., & Petersen, B. C. (1993).
Working capital and fixed investment: new
evidence on financing constraints. The RAND
Journal of Economics, 328-342.
Filbeck, G., & Krueger, T. M. (2005). An
analysis of working capital management results
across industries. American Journal of
Business, 20(2), 11-20.
Gill, A., Biger, N., & Mathur, N. (2010). The
relationship between working capital
management and profitability: Evidence from
the United States. Business and economics
journal, 10(1), 1-9.
Howorth, C., & Westhead, P. (2003). The
focus of working capital management in UK
small firms. Management Accounting
Research, 14(2), 94-111.
James, H. S. (1999). Owner as manager,
extended horizons and the family firm.
International journal of the economics of
business, 6(1), 41-55.
Juan García-Teruel, P., & Martinez-Solano, P.
(2007). Effects of working capital management
on SME profitability. International Journal of
Managerial Finance, 3(2), 164-177.
Karim, R., Al-Mamun, M. A., & Miah, M. T.
(2017). Relationship Between Working Capital
Management Efficiency and Profitability: A
Comparative Study on Square Pharmaceuticals
Limited and Beximco Pharmaceuticals Limited,
in Bangladesh. International Journal of
Economics, Finance and Management
Sciences, 5(2), 121-128.
Kaur, H. V., & Singh, S. (2013). Managing
efficiency and profitability through working
capital: An empirical analysis of BSE 200
companies. Asian Journal of Business
Management, 5(2), 197-207.
Paul, S. Y., Devi, S. S., & Teh, C. G. (2012).
Impact of late payment on Firms'
profitability: Empirical evidence from
Malaysia. Pacific-Basin Finance Journal, 20(5),
-792.
Sharif, M. A., & Islam, M. R. (2018). Working
Capital Management a Measurement Tool for
Profitability: A Study on Pharmaceutical
Industry in Bangladesh. Journal of Finance
and Accounting, 6(1), 1.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
