Working Capital Management and Working Capital Policies on Firm’s Value: A Special Reference to the Listed Companies in Sri Lanka
Asian Journal of Economics, Business and Accounting · pp. 122–137 · Published 18 Sep 2023
10.9734/ajeba/2023/v23i201098Abstract
The aim of this paper is to investigate the influence between working capital management and firm value in the Sri Lankan context. This research has used pooled panel data of 475 observations from 95 listed firms across 18 sectors. Secondary data which are gathered from the annual report published by the CSE for the five years period from 2018/2019 to 2022/2023. The findings states that this model in the study explains a rise in the number of days in the cash conversion period decreased the firm's valuation by 43%. Further, working capital investment policy increases, or in other terms, the degree of WCIP’s aggressiveness rises, the firm value decreases, and increases in financing policy leads to decreases in firm value. This study includes both working capital investment policy and working capital financing policy with control variables in Sri Lanka. This research provides limited literature on working capital management, working capital policies, and firm value in Sri Lanka.
Cited by 0
No indexed citations yet.
Related research
- Working Capital Management and the Performance of Selected Deposit Money Banks in Nigeria — shares topic coverage
- The Impact of Working Capital Management on the Profitability of Smart Bags Limited Manufacturing Firm in Zimbabwe — shares topic coverage
- Empirical Study on the Influence of Working Capital Management on Performance of SMEs in a Developing Economy — shares topic coverage
- Working Capital Financing Policy and Profitability: Empirical Study on Bangladeshi Listed Firms — shares topic coverage
- An Estimation of Working Capital Management on Profit Using Logistic Regression and Discriminant Analysis — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
0
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.