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THE TREND IN WC MANAGEMENT AND ITS IMPACT ON FIRMS PERFORMANCE A CASE OF PSX100 INDEX

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04 Pages : 54-70

http://dx.doi.org/10.31703/gmsr.2021(VI-III).04      10.31703/gmsr.2021(VI-III).04      Published : Sep 2021

The trend in WC Management and its Impact on Firms Performance: A Case of PSX-100 Index

Abstract

    The intention is to investigate the trends in WC management and the association of managing working capital with the firm’s performance. Return of total Assets is the proxy to measure the firm’s performance and its association with the variables representing the WCM is studied for a sample of 54 firms for the period 2004-2010.The variables like invdays and ardays show a considerable effect on the firm’s earning capability. The study proved a direct and considerable affiliation between the firm liquid position with its performance. Profitability and the firm’s size have a prominent positive association. The association between the debts ratio and the firm’s performance is inverse but this association is insignificant. Similarly, the results show insignificant relation between the profitability and the cash gap and account payable in days. The results show that there is an imperious role of better managing firm working capital with the firm’s performance.

    Working Capital Management, Account Payable, Cash-Conversion-Cycle, Account Receivable, Inventory, Regression Analysis

    (1) Yousaf Khan
    National University of Modern Languages, Islamabad, Pakistan
    (2) Shah Hussain
    MS Scholor, National University of Modern Languages, Islamabad, Pakistan.
    (3) Muhammad Israr
    MS Scholor, National University of Modern Languages, Islamabad, Pakistan.
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Cite this article

APA

    APA : Khan, Y., Hussain, S., & Israr, M. (2021). The trend in WC Management and its Impact on Firms Performance: A Case of PSX-100 Index. Global Management Sciences Review, VI(III), 54-70. https://doi.org/10.31703/gmsr.2021(VI-III).04

CHICAGO

    CHICAGO : Khan, Yousaf, Shah Hussain, and Muhammad Israr. 2021. "The trend in WC Management and its Impact on Firms Performance: A Case of PSX-100 Index." Global Management Sciences Review, VI (III): 54-70 doi: 10.31703/gmsr.2021(VI-III).04

HARVARD

    HARVARD : KHAN, Y., HUSSAIN, S. & ISRAR, M. 2021. The trend in WC Management and its Impact on Firms Performance: A Case of PSX-100 Index. Global Management Sciences Review, VI, 54-70.

MHRA

    MHRA : Khan, Yousaf, Shah Hussain, and Muhammad Israr. 2021. "The trend in WC Management and its Impact on Firms Performance: A Case of PSX-100 Index." Global Management Sciences Review, VI: 54-70

MLA

    MLA : Khan, Yousaf, Shah Hussain, and Muhammad Israr. "The trend in WC Management and its Impact on Firms Performance: A Case of PSX-100 Index." Global Management Sciences Review, VI.III (2021): 54-70 Print.

OXFORD

    OXFORD : Khan, Yousaf, Hussain, Shah, and Israr, Muhammad (2021), "The trend in WC Management and its Impact on Firms Performance: A Case of PSX-100 Index", Global Management Sciences Review, VI (III), 54-70

TURABIAN

    TURABIAN : Khan, Yousaf, Shah Hussain, and Muhammad Israr. "The trend in WC Management and its Impact on Firms Performance: A Case of PSX-100 Index." Global Management Sciences Review VI, no. III (2021): 54-70. https://doi.org/10.31703/gmsr.2021(VI-III).04