Title: Impact of corporate governance on working capital management: an empirical investigation from India

Authors: Najib H.S. Farhan; Faozi A. Almaqtari; Mamdouh Abdulaziz Saleh Al-Faryan; Mosab I. Tabash

Addresses: Department of Finance, Universal Business School, India ' Department of Accounting, Faculty of Business, Economics and Social Development, University Malaysia Terengganu, Terengganu, Malaysia ' Department of Accounting and Financial Management, Faculty of Business and Law, University of Portsmouth, UK ' College of Business, Al Ain University, Al Ain, United Arab Emirates

Abstract: The current study examined the effects of corporate governance on the effectiveness of working capital management among Indian pharmaceutical companies. The study extracted data for ten years from 2008 to 2017 and the empirical analysis conducted was based on a large sample of 82 companies. The results of the current study revealed the number of directors on a board of directors negatively and significantly affects payables deferral period and receivables collection period, while composition of the board does not have a significant impact on the efficiency of working capital management. The current research is believed to be among the first to investigate the influence of corporate governance on the effectiveness of working capital management in an emerging economy, India. The study data should be beneficial for policymakers, investors, finance managers, and others concerned with the efficiency of working capital management.

Keywords: working capital management; WCM; corporate governance; pharmaceutical industry; India; independent directors; dependent directors; board of directors' size; emerging economy.

DOI: 10.1504/GBER.2022.126636

Global Business and Economics Review, 2022 Vol.27 No.4, pp.406 - 428

Received: 31 Jul 2021
Accepted: 28 Nov 2021
Published online: 31 Oct 2022 *

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