Abstract
The present study investigates into the traditional relationship of working capital management and firm’s profitability. Using panel data set for the period of 1998- 2005, the impact of aggressiveness of working capital investment and financing policies have been evaluated on return on assets as well as Tobin’s q. Managers can create value if they are adopting for a conservative approach towards working capital investment and working capital financing policies. However, if firms are having aggressive approach to manage the short term liabilities, investors give more value to those firms in stock markets.
Keywords
Working capital, Aggressiveness, Conservativeness, Profitability, Panel data
DOI
https://doi.org/10.54784/1990-6587.1170
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Nazir, M. S., & Afza, T. (2009). A panel data analysis of working capital management policies. Business Review, 4(1), 143-158. Retrieved from https://doi.org/10.54784/1990-6587.1170
Published Online
February 24, 2021
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