- DOI: 10.1108/QRFM-04-2013-0010
- Corpus ID: 153713912
Working capital management: a literature review and research agenda
- H. Singh , Satish Kumar
- Published 29 August 2014
- Business, Economics
- Qualitative Research in Financial Markets
96 Citations
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Qualitative Research in Financial Markets
ISSN : 1755-4179
Article publication date: 29 July 2014
The purpose of this paper is to review research on working capital management (WCM) and to identify gaps in the current body of knowledge, which justify future research directions. WCM has attracted serious research attention in the recent past, especially after the financial crisis of 2008.
Design/methodology/approach
Using systematic literature review (SLR) method, the present study reviews 126 articles from referred journal and international conferences published on WCM.
Detailed content analysis reveals that most of the research work is empirical and focuses mainly on two aspects, impact of working capital on profitability of firm and working capital practices. Major research work has concluded that WCM is essential for corporate profitability. The major issues with prior literature are lack of survey-based approach and lack of systematic theory development study, which opens all new areas for future research. The future research directions proposed in this paper may help develop a greater understanding of determinants and practices of WCM.
Practical implications
Till date, literature on classification of WCM has been almost non-existent. This paper reviews a large number of articles on WCM and provides a classification scheme in to various categories. Subsequently, various emerging trends in the field of WCM are identified to help researchers specifying gaps in the literature and direct research efforts.
Originality/value
This paper contains a comprehensive listing of publications on the WCM and their classification according to various attributes. The paper will be useful to researchers, finance professionals and others concerned with WCM to understand the importance of WCM. To the best of the authors’ knowledge, no detailed SLR on this topic has previously been published in academic journals.
- Literature review
- Survey methods
- Operating cycle
- Working capital management
Pratap Singh, H. and Kumar, S. (2014), "Working capital management: a literature review and research agenda", Qualitative Research in Financial Markets , Vol. 6 No. 2, pp. 173-197. https://doi.org/10.1108/QRFM-04-2013-0010
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Working Capital Management – Theory and Practice
Ramesh Birajdar, Working Capital Management – Theory and Practice, International Journal of Accounting and Financial Management Research and Development (IJAFMRD). 1(1), 2023. pp. 1-7, DOI: https://doi.org/10.17605/OSF.IO/BDEPR
7 Pages Posted: 13 Apr 2023
Ramesh Birajdar
KPCL-Kirloskar Pneumatic Company Ltd, India
Date Written: March 25, 2023
Working capital management is always crucial in any business. Efficiency of working capital is determined based various tools used by the companies. However in practice, companies do follow different tools to reduce working capital which is directly impacting profitability of the company. Whether to adopt aggressive policy or lenient policy is exclusively depends on the company and it is vary from business to business and company to company.
Keywords: working capital, Debtors bad debt policy, Efficiency of working capital
Suggested Citation: Suggested Citation
Ramesh Birajdar (Contact Author)
Kpcl-kirloskar pneumatic company ltd, india ( email ), do you have a job opening that you would like to promote on ssrn, paper statistics, related ejournals, finance education ejournal.
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This paper provides contextual explanations on the related aspects of Working Capital (WC) management. The objective of the paper is to illustrate related variables and cash management models in ...
Working capital management is a critical aspect of financial management that is pivotal in determining a firm's overall performance and sustainability. ... supported by many subsequent research papers. In various studies, the cash conversion cycle appears to be the most befitting measurement of working capital management. CCC depicts a firm's ...
1. Introduction. Working capital management (WCM) is one of the challenges faced by companies, which can provide a convenient and appropriate level of liquidity for enabling companies to cover their short-term financial obligations - resulting from financing their operations - in order to ensure the continuity of the companies' business and maximize their profitability.
Abstract: An analysis of working capital and working capital management. (WCM) is the purpose of this st udy. This study analyzes the research published. between 1960 and 2021 using the systematic ...
Abstract. The main aim of the current study is to explore the relationship between working capital (WC) and firm performance. We chose a sample of 326 Czech firms, including 20 certified firms from the EFQM (European Foundation for Quality Management) Excellence Model from the Albertina database.
This research paper purposes to discover the reasons that impact the working capital management (WCM) of Indian-listed manufacturing firms. The study uses a panel data set of 291 firms covering ...
2. Literature review and hypothesis development. For sustainable firm performance, the right choice of working capital is most important since it optimises the operating costs and maintains financial liquidity (; Zimon & Tarighi, Citation 2021).The working capital literature provides two types of policies: working capital investment policy and working capital financing policy.
Moreover, it aims to spell out the areas for further research on WCM so that the body of knowledge can be expanded. A systematic literature review of the research works on WCM has been performed using Google Scholar. Articles with citations of 50 and above as of June 05, 2018 are considered for the detailed citation based analysis.
Purpose - - The purpose of this paper is to review research on working capital management (WCM) and to identify gaps in the current body of knowledge, which justify future research directions. WCM has attracted serious research attention in the recent past, especially after the financial crisis of 2008. Design/methodology/approach - - Using systematic literature review (SLR) method, the ...
This study investigates the role of corporate innovation in moderating the impact of working capital management on profitability for a Chinese high-tech manufacturing industry. Using a two-way fixed effect model and subgroup analysis, we found that net working capital (NWC) negatively impacted corporate profitability, while corporate innovation ...
Search for more papers by this author. First published: 20 March ... there are no or few studies that were made on the issue and the problem is almost less investigated and there is a research gap on this part. ... working capital management which was measured by the inventory conversion period has a statistically significant and positive ...
Abstract. Working capital management is one of the most important decisions that affect an organisation's financial performance. Despite the importance of this topic, the empirical evidence for emerging economies is scarce; therefore, this research attempts to estimate and compare how investment in working capital impacts the financial performance of companies listed on the stock exchanges ...
The paper examined the working capital management variations and profitability by analysing the connection among changes in working capital management and firm profitability. ... This situation has complicated the research timetable and forced the researcher to extend the research time plan to keep the methodology flow. Some meetings were time ...
According to Aktas et al. (2015) and Yunos et al. (2015), efficient working capital management (WCM) helps in reallocating underutilized resources to generate higher-value that can lead to the enhancement of firm's performance and can help in increasing profitability without resulting in liquidity problems. These studies have the privilege of ...
This study attempts to explore how working capital decision, that is, aggressive investment and finance decision and efficiency of the working capital management (WCM) contribute to the profitability operationalised by gross operating profit (GOP) and return on assets of listed manufacturing firms in Bangladesh.
2.4 CASH FLOW. The terminology of cash flow has for a long time been used to attract investors to projects and operations in need of capital (Fight, 2005). The fact that a project is estimated to generate cash is one of our time's most efficient arguments for possible investments (Hofmann, 2005).
Purpose. The purpose of this paper is to review research on working capital management (WCM) and to identify gaps in the current body of knowledge, which justify future research directions. WCM has attracted serious research attention in the recent past, especially after the financial crisis of 2008.
papers discussed the relationship between working capital management and profitability. Out of 20, 17 were using the working capital management component as an independent variable,and 3 were using Bhattacharya, 1997 model components. Citation-based reviews are as follows: 1. Marc Deloof, 2003 Citation - 3108 Journal name - journal of
Working capital management is considered as one of the crucial areas of financial management, because Working capital is the lifeblood and nerve centre of every business unit. ... International Review of Business Research Papers, 3(1), 279-300. Google Scholar. Rahman, M. M. (2011). Working capital management and profitability : A study on ...
Working capital management is always crucial in any business. Efficiency of working capital is determined based various tools used by the companies. ... Ramesh Birajdar, Working Capital Management - Theory and Practice, International Journal of Accounting and Financial Management Research and Development (IJAFMRD). 1(1), 2023. pp. 1-7, DOI ...
Working Capital Management and Business Pe rformance. Kabir Yazid Ibrahim 1, Muhammad Usaini 2, Sunday Elijah 3, *. 1 &2Department of Accounting and Finance, Federal University Gusau, Zamfara ...
Working capital management is one of the most important areas while making the comparisons of liquidity ... The purpose of this study is to develop the research on the relationship between Working Capital Management and profitability by examining how it is impacted in different company. ... Ghosh and Maji, (2003) in this paper made an attempt ...
Return on total assets represents the profitability of the industry and acts as a dependent variable to develop an empirical model in order to establish relationship between working capital management and profitability of the steel industry in India by using panel data regression. The period of study is 17 years, that is, 2000-2016.
Working capital management (WCM) affects both liquidity and profitability of the firm. Its optimum ... The research papers which were not published in peer-reviewed journals. These include papers published as book chapter(s), conference proceedings, or case studies; and 3) The studies which were found irrelevant by going through the abstract ...
The Center publishes working papers, staff studies, survey reports, and other analyses to prompt discussion among the FDIC's many stakeholders to expand knowledge and understanding of issues that affect the banking system. ... The Center is also supported by advisors, scholars, and fellows who advise senior management and coauthor research ...