Title: Current assets management: a comparative study between nascent and established entrepreneurs

Authors: Najib H.S. Farhan; Ebrahim Mohammed Al-Matari; Eissa A. Al-Homaidi; Fozi Ali Belhaj; Waleed M. Al-Ahdal

Addresses: Faculty of Business Studies, Arab Open University, KSA ' College of Business, Jouf University, KSA; Faculty of Commerce and Economics, Amran University, Yemen ' Faculty of Business, Al-Rowad University, Taiz, Yemen ' Faculty of Business Studies, Arab Open University, KSA ' Faculty of Business, Economics and Social Development, University Malaysia Terengganu, Malaysia

Abstract: This study aims to find out how current assets are being managed by both nascent and established entrepreneurs in India. Moreover, it attempts to investigate the effects of current assets management on the profitability of the firms. The examination of this paper depends on a panel data method of 1,371 Indian entrepreneurs, for the period from 2016 to 2017. Least square regression models are used for estimating the results. The study found that net trade cycle positively and significantly affects established entrepreneurs' liquidity. Furthermore, current assets to total assets ratio significantly impact entrepreneurs' profitability and nascent entrepreneurs' profitability. This study is motivated to bridge an existing gab in the literature by finding out how current assets are being managed by both nascent and established entrepreneurs in India, which has not been considered yet as per the knowledge of authors, and therefore makes this study of novel contribution to the literature.

Keywords: current assets management; net trade cycle; liquidity; nascent entrepreneurs; established entrepreneurs.

DOI: 10.1504/IJEBR.2023.129972

International Journal of Economics and Business Research, 2023 Vol.25 No.3, pp.347 - 365

Received: 10 Feb 2021
Accepted: 22 Apr 2021
Published online: 04 Apr 2023 *

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