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EFFECT OF WORKING CAPITAL MANAGEMENT ON FIRM PERFORMANCE THE ROLE OF OWNERSHIP STRUCTURE

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10 Pages : 75-83

http://dx.doi.org/10.31703/gssr.2019(IV-I).10      10.31703/gssr.2019(IV-I).10      Published : Mar 2019

Effect of Working Capital Management on Firm Performance: The Role of Ownership Structure

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..

    (1) Shams ur Rahman
    Assistant Professor, IBMS, The University of Agriculture, Peshawar, KP, Pakistan.
    (2) Khurshed Iqbal
    Assistant Professor,Department of Business Administration, Iqra National University, Peshawar, KP, Pakistan.
    (3) Aamir Nadeem
    Assistant Professor,Department of Management Sciences, City University of Science and Information Technology, Peshawar, KP, Pakistan.
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Cite this article

APA

    APA : Rahman, S. u., Iqbal, K., & Nadeem, A. (2019). Effect of Working Capital Management on Firm Performance: The Role of Ownership Structure. Global Social Sciences Review, IV(I), 75-83. https://doi.org/10.31703/gssr.2019(IV-I).10

CHICAGO

    CHICAGO : Rahman, Shams ur, Khurshed Iqbal, and Aamir Nadeem. 2019. "Effect of Working Capital Management on Firm Performance: The Role of Ownership Structure." Global Social Sciences Review, IV (I): 75-83 doi: 10.31703/gssr.2019(IV-I).10

HARVARD

    HARVARD : RAHMAN, S. U., IQBAL, K. & NADEEM, A. 2019. Effect of Working Capital Management on Firm Performance: The Role of Ownership Structure. Global Social Sciences Review, IV, 75-83.

MHRA

    MHRA : Rahman, Shams ur, Khurshed Iqbal, and Aamir Nadeem. 2019. "Effect of Working Capital Management on Firm Performance: The Role of Ownership Structure." Global Social Sciences Review, IV: 75-83

MLA

    MLA : Rahman, Shams ur, Khurshed Iqbal, and Aamir Nadeem. "Effect of Working Capital Management on Firm Performance: The Role of Ownership Structure." Global Social Sciences Review, IV.I (2019): 75-83 Print.

OXFORD

    OXFORD : Rahman, Shams ur, Iqbal, Khurshed, and Nadeem, Aamir (2019), "Effect of Working Capital Management on Firm Performance: The Role of Ownership Structure", Global Social Sciences Review, IV (I), 75-83

TURABIAN

    TURABIAN : Rahman, Shams ur, Khurshed Iqbal, and Aamir Nadeem. "Effect of Working Capital Management on Firm Performance: The Role of Ownership Structure." Global Social Sciences Review IV, no. I (2019): 75-83. https://doi.org/10.31703/gssr.2019(IV-I).10