Title: Working capital, COVID-19 and firm performance: empirical evidence from India

Authors: Prasenjit Roy

Addresses: Department of Commerce, School of Management Sciences, Tezpur University, Tezpur, 784028, Assam, India

Abstract: This study investigates the impact of COVID-19 on working capital and financial performance of Indian firms within the BSE 500 index spanning from 2014-2022. Using a panel regression model, the research analyses various working capital policy dimensions and their links to key performance indicators, such as ROA and TBQ during the pandemic. The findings provide essential insights for policymakers and managers navigating the complexities of the global financial landscape. The study advocates for adaptive working capital management (WCM) policies, emphasising the need for a balanced working capital strategy and caution in short-term debt reliance during pandemics. The positive relationship between the cash conversion cycle and performance indicators challenges conventional wisdom, prompting a revaluation of traditional practices considering dynamic economic conditions. The findings serve as a blueprint, promoting strategic foresight, adaptive policies, and resilient financial management amid the evolving economic landscape.

Keywords: COVID-19; working capital management; WCM; financial performance; BSE 500 Index; panel regression; economic conditions.

DOI: 10.1504/GBER.2025.147179

Global Business and Economics Review, 2025 Vol.33 No.1, pp.108 - 132

Received: 20 Jan 2024
Accepted: 13 Apr 2024
Published online: 11 Jul 2025 *

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