Working capital approaches and firm's returns in Pakistan

Artikel

This study investigates the relationship between the aggressive/conservative working capital policies for seventeen industrial groups of public limited companies listed at Karachi Stock Exchange for a period of 1998-2003. The ordinary least square regression model has been used to investigate into the relationship of working capital approaches and the returns of firms. The study found significant differences among their working capital investment and financing policies across different industries. Moreover, these significant differences are remarkably stable over the period of six years. The aggressive investment working capital policies are accompanied by aggressive working capital financing policies. Finally, we found a negative relationship between the profitability measures of firms and degree of aggressiveness of working capital investment and financing policies. The study would contribute a better understanding of working capital management policies in an emerging market like Pakistan.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Pakistan Journal of Commerce and Social Sciences (PJCSS) ; ISSN: 2309-8619 ; Volume: 1 ; Year: 2008 ; Pages: 25-36 ; Lahore: Johar Education Society, Pakistan (JESPK)

Classification and Topics

• Classification: Wirtschaft
• Subject: Working capital ; Aggressive working capital policy ; Aggressive financing policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Afza, Talat ; Nazir, Mian Sajid
• Event: Veröffentlichung
• (who): Johar Education Society, Pakistan (JESPK)
• (where): Lahore
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/187978
• Last update: 10.03.2025, 11:43 AM CET