Working Capital Management in Emerging Markets : A Case of Pakistan

ISBN-13: 9783639199987 / Angielski / Miękka / 2009 / 100 str.

Mian Sajid Nazir

Opis

The corporate finance literature has traditionally focused on the study of long-term financial decisions, particularly investments, capital structure, dividends and company valuation decisions. However, short-term assets and liabilities; an important component, needs to be carefully analyzed. The present study investigates the relative relationship between the aggressive/conservative working capital policies and profitability as well as risk of firms. The working capital policies are statistically different from industries to industries as well as consistent for whole of the study period. A negative relationship has been established between the between working capital policies and profitability. Moreover, the present study validates relationship between the level of current assets and liabilities and financial risk of the firms; however, strong evidence is found that degree of aggressiveness of working capital policies may affect the operating risk of firms as measured by the variation in sales of respective firms.

O autorze

MS Nazir, MS and MBA from COMSATS Institute of IT, Pakistan, has five years of experience of research and teaching in the areas of Corporate Finance, Working Capital, Corporate Governance and Investments. Currently, he is working as Lecturer of Finance COMSATS Institute of IT and has more than 20 research contributions on his credit.