Work

Working Capital Management and Firm Performance in Emerging Economies: Evidence from India

Year: 2016

Type: article

Abstract: This article aims to investigate the relationship between working capital management and firm performance in an emerging market. The analysis is done over a long window spanning across 2000–2014 by using ordinary least square (OLS), fixed- and random-effects model and generalized method of moments (GMM) on 2,327 firm-year observations, a panel data of 179 companies listed on the S&P BSE 500 Index of Bombay Stock Exchange (BSE). For robustness, in addition to accounting performance, market-based performance measure has also been employed to measure firm performance. This study based on India finds a negative relationship between the working capital management and firm performance, necessitating the need to efficiently manage the working capital for enhanced profitability.

Source: Management and Labour Studies

DOI: 10.1177/0258042x16658733

Authors: Shikha Bhatia, Aman Srivastava

Institutions: Jaipuria Institute of Management, International Management Institute

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2509487560

FWCI: 18.27

Cites: 39

Cited by: 84

Related to: 10