An analysis of working capital management in India: An urgent need to refocus

The current study aims to evaluate the impact of working capital components on the financial performance of Indian pharmaceutical companies. Moreover, it aims to analyze working capital among small, medium and large firms. The study uses a panel data of 82 pharmaceutical companies for the period fro...

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Autores principales:	Najib H.S. Farhan, Fozi Ali Belhaj, Waleed M. Al-ahdal, Faozi A. Almaqtari
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	working capital financial performance pharmaceutical industry gmm estimation Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/a0e0d786299e4b5c90dff0fe2a0efbee
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spelling	oai:doaj.org-article:a0e0d786299e4b5c90dff0fe2a0efbee2021-12-02T17:38:09ZAn analysis of working capital management in India: An urgent need to refocus2331-197510.1080/23311975.2021.1924930https://doaj.org/article/a0e0d786299e4b5c90dff0fe2a0efbee2021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2021.1924930https://doaj.org/toc/2331-1975The current study aims to evaluate the impact of working capital components on the financial performance of Indian pharmaceutical companies. Moreover, it aims to analyze working capital among small, medium and large firms. The study uses a panel data of 82 pharmaceutical companies for the period from 2008 to 2017. Generalized Method of Moment (GMM) model is used for estimating the results. Findings show that there is a significant difference in managing working capital among small, medium and large firms. Furthermore, it is found that number of days’ collection period, number of days’ payable period and number of days’ inventory holding period positively impact the financial performance of Indian pharmaceutical companies measured by return on assets and net operating margin. Whereas, cash conversion cycle has a negative impact on return on assets, net operating margin and Tobin’s Q.Najib H.S. FarhanFozi Ali BelhajWaleed M. Al-ahdalFaozi A. AlmaqtariTaylor & Francis Grouparticleworking capitalfinancial performancepharmaceutical industrygmm estimationBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	working capital financial performance pharmaceutical industry gmm estimation Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	working capital financial performance pharmaceutical industry gmm estimation Business HF5001-6182 Management. Industrial management HD28-70 Najib H.S. Farhan Fozi Ali Belhaj Waleed M. Al-ahdal Faozi A. Almaqtari An analysis of working capital management in India: An urgent need to refocus
description	The current study aims to evaluate the impact of working capital components on the financial performance of Indian pharmaceutical companies. Moreover, it aims to analyze working capital among small, medium and large firms. The study uses a panel data of 82 pharmaceutical companies for the period from 2008 to 2017. Generalized Method of Moment (GMM) model is used for estimating the results. Findings show that there is a significant difference in managing working capital among small, medium and large firms. Furthermore, it is found that number of days’ collection period, number of days’ payable period and number of days’ inventory holding period positively impact the financial performance of Indian pharmaceutical companies measured by return on assets and net operating margin. Whereas, cash conversion cycle has a negative impact on return on assets, net operating margin and Tobin’s Q.
format	article
author	Najib H.S. Farhan Fozi Ali Belhaj Waleed M. Al-ahdal Faozi A. Almaqtari
author_facet	Najib H.S. Farhan Fozi Ali Belhaj Waleed M. Al-ahdal Faozi A. Almaqtari
author_sort	Najib H.S. Farhan
title	An analysis of working capital management in India: An urgent need to refocus
title_short	An analysis of working capital management in India: An urgent need to refocus
title_full	An analysis of working capital management in India: An urgent need to refocus
title_fullStr	An analysis of working capital management in India: An urgent need to refocus
title_full_unstemmed	An analysis of working capital management in India: An urgent need to refocus
title_sort	analysis of working capital management in india: an urgent need to refocus
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/a0e0d786299e4b5c90dff0fe2a0efbee
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An analysis of working capital management in India: An urgent need to refocus

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