Working capital management and corporate performance: evidence from a study of Indian firms Online publication date: Sat, 30-Nov-2013
by Pankaj K. Agarwal; Sunil Kumar Varma
International Journal of Indian Culture and Business Management (IJICBM), Vol. 7, No. 4, 2013
Abstract: Working capital is the firm's circulating funds required for meeting day-to-day operations. Effective management of working capital is therefore very critical to a firm's financial health. The challenge of working capital management is to strike a balance between the liquidity and profitability. Therefore, it follows, that precise evaluation of working capital performance of various companies is extremely important. For, there is a need to develop and regularly update quantitative benchmarks for effective management of working capital both at firm and industry level. Towards this end, this paper studies 366 non-financial Indian corporates, chosen from a widely followed broad-based stock index BSE-500, over a three-year period, from 2007 to 2010, to assess their working capital performance. In addition, the study finds significant relationship between working capital management and firm profitability. The methodology followed is that of CFO Europe (1997), Anand and Gupta (2003) and Anand and Malhotra (2007).
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Indian Culture and Business Management (IJICBM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook