Title: The impact of working capital management on the decision of Indian production firms about the amount of dividends

Authors: Amarjit Gill; Harvinder S. Mand; John D. Obradovich; Neil Mathur

Addresses: The University of Saskatchewan, Edwards School of Business, 25 Campus Drive, Saskatoon, SK, S7N-5A7, Canada ' University College Benra-Dhuri, District Sangrur, East Punjab, India ' Liberty University, 1971 University Blvd., Lynchburg, VA 24502, USA ' College of Management and Technology, Walden University, 100 Washington Avenue South, Minneapolis, MN 55401, USA

Abstract: This study examines the impact of working capital management on decisions concerning the extent of distribution of dividends. Results suggest that working capital management plays a role in decisions concerning dividend distribution in the Indian production firms. The findings of this study indicate that cash level has a strong impact on decisions concerning dividend distributions for Indian production firms holding higher cash balances compared with non-dividend paying Indian production firms. This study contributes to the literature on the factors that impact firms' decisions concerning the distribution of dividends.

Keywords: working capital management; dividend payout; cash holding; Indian production firms.

DOI: 10.1504/IJBG.2019.099300

International Journal of Business and Globalisation, 2019 Vol.22 No.3, pp.372 - 388

Received: 10 Jul 2017
Accepted: 19 Jul 2017
Published online: 26 Apr 2019 *

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