Effect of Working Capital Management on Firm Performance: The Role of Ownership Structure
Journal Title: Global Social Sciences Review - Year 2019, Vol 4, Issue 1
Abstract
Current study investigates the effect of working capital management on firm performance with the moderating role of ownership structure. A random sample of 77 firms for the period 2011-2015 was selected. By using fixed effect model the study demonstrated statistically significant negative relationship of leverage, average collection period and quick ratio on firm performance, while current ratio, account payable and inventory turnover found with positive significant effect on Firm Performance. Further, the effect of working capital on firm performance was positively affected by Institutional ownership and negatively affected by Managerial ownership. Thus, the results suggest that the owner/manager needs to manage their limited resources efficiently for the improvement of profitability. It is also advised that investor and shareholder pay attention to the level of institutional and managerial ownership at the time of investment..
Authors and Affiliations
Shams ur Rahman, Khurshed Iqbal, Aamir Nadeem
Keywords
Related Articles
- EP ID EP606443
- DOI 10.31703/gssr.2019(IV-I).10
- Views 57
- Downloads 0
Make-Belief in Language and Verity of Legitimized Oppression: A Critical Analysis of Selected Extracts From Anita Shreve's Body Surfing
The research in hand is a textual analysis of the novel Body Surfing by Anita Shreve which explains the role of language in the construction of an ideology as reality. The aim is to highlight the construction of a certai...
Servant Leadership Style and Leadership Effectiveness: The Moderating Role of the Cognitive Style Index
The aim of this study is to find the moderating role of cognitive style index on servant leadership style and leadership effectiveness relationship. For this purpose, a survey was conducted on 415 teaching staff from pub...
Wh-Movement Pattern in the Spoken Discourse of Teachers: A Syntactic Analysis
This study investigates the syntactic structures of spoken discourse of teachers in academic discourse. The knowledge of syntactic structure of a language helps in understanding the spoken discourse. So, the study identi...
Electoral Politics of Jamat-e-Islami Pakistan (1987-2009)
Jamat-e-Islami (JI) started as a social movement in 1941 and became an influential group to support Islamic constitution in Pakistan. Later, the leaders of this movement decided to take part in electoral politics. And in...
National Plan for Devolution of Power under 18th Amendment: Challenges for Government in the New Pakistan
History of the politics of agitation and protest indicate that political agitation has always been converted from any point to the issue of provincial autonomy in Pakistan. The case of Pakistan Tehrik-E-Insaf (PTI), on a...