IDEAS home Printed from https://ideas.repec.org/a/asi/ajoerj/v9y2019i2p27-37id4273.html
   My bibliography  Save this article

Working Capital Management and Firm Performance: Evidence from Non-Financial Firms in Pakistan

Author

Listed:
  • Mohsin Siraj
  • Muhammad Mubeen
  • Salman Sarwat

Abstract

This study analyzes the effects of Working Capital management i.e. inventory management, receivable management and payable management, on the performance of the non-financial firms in Pakistan. Panel data of 280 nonfinancial firms enlisted in Pakistan Stock Exchange have been analyzed from 2000 to 2016. Firms’ profitability were proximate with return on assets and return on equity; whereas for growth i.e. sales growth and asset growth were used. The impact of Working Capital management is captured through its constituent policies such as Inventory management, Receivable Management and Payable management. Firm size, liquidity and leverage are used as control variables. Results suggest that Working Capital management has a significant impact on firms’ financial performance in terms of profitability, as well as growth. As far as component wise results are concerned, inventory management does influence the firms’ growth and Payable management significantly, hence affecting the firms’ profitability. However, only receivable management influences both profitability and growth.

Suggested Citation

  • Mohsin Siraj & Muhammad Mubeen & Salman Sarwat, 2019. "Working Capital Management and Firm Performance: Evidence from Non-Financial Firms in Pakistan," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 9(2), pages 27-37.
    • Handle: RePEc:asi:ajoerj:v:9:y:2019:i:2:p:27-37:id:4273
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5004/article/view/4273/6639
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Onaolapo A.R. & Ajayi O.G., 2023. "Effect of Working Capital Management Practices on the Performance of Listed Nigerian Pharmaceutical Companies," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 466-479, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:ajoerj:v:9:y:2019:i:2:p:27-37:id:4273. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5004/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.