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Effects of working capital management on firms' performance: Empirical study in Pakistan

  • Faisal Mahmood
  • , Han Dongping
  • , Adnan Abbas
  • , Muhammad Ibrar
  • , Nazakat Ali
  • Harbin Institute of Technology
  • Harbin University of Science and Technology
  • Iqra University

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Disparity in working capital causes problems in meeting short term goals which ultimately make it difficult to achieve the longer ones targets. This work is done with the intension to evaluate effects of working capital management on firms' performance in Pakistan. We used analytical modeling and presented Panel data GMM model which evaluated financial data of top 5 listed companies from 10 different sectors of Pakistan. Results disclose that there is a non-linear relationship between performance of a firm and working capital management in seven sectors of Pakistan. These findings are enormously valuable for managers to maintain optimum level of working capital for maximization of their profit.

Original languageEnglish
Title of host publicationProceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020
Subtitle of host publicationSustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth
EditorsKhalid S. Soliman
PublisherInternational Business Information Management Association, IBIMA
Pages1098-1107
Number of pages10
ISBN (Electronic)9780999855119
StatePublished - 2018
Event32nd International Business Information Management Association Conference, IBIMA 2018 - Seville, Spain
Duration: 15 Nov 201816 Nov 2018

Publication series

NameProceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth

Conference

Conference32nd International Business Information Management Association Conference, IBIMA 2018
Country/TerritorySpain
CitySeville
Period15/11/1816/11/18

Keywords

  • Pakistan Stock Exchange
  • Profitability
  • Working Capital

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