EN
Time Taken to Reach the Performance Summit: Nature of Relation between Working Capital Management and Firm Performance in the Indian Context
Abstract
This article examines the impact of Working Capital Management measured by Cash Conversion Cycle (CCC) on the financial performance of firms in the Indian context. The period of study is from the year 2000 to 2014 for companies listed on the National Stock Exchange, India. The study uses regression model to analyze panel data. Financial and banking related companies have been removed from the dataset to mitigate bias. This study finds that working capital management is an important variable that affects the financial performance of firms. An empirical examination has been conducted in this study over a fairly big dataset spread over a long period in the Indian context. Increasing the efficiency of CCC would lead to an increment in firm’s performance up to a certain point which is referred to as the “performance summit” in this study. Our study concludes that there exists an inverse U shaped relationship between WCM and performance.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
December 1, 2017
Submission Date
December 1, 2017
Acceptance Date
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Published in Issue
Year 2017 Volume: 7 Number: 4
APA
Tripathi, N. N., & Ahamed, N. (2017). Time Taken to Reach the Performance Summit: Nature of Relation between Working Capital Management and Firm Performance in the Indian Context. International Journal of Economics and Financial Issues, 7(4), 530-536. https://izlik.org/JA73MB59GW
AMA
1.Tripathi NN, Ahamed N. Time Taken to Reach the Performance Summit: Nature of Relation between Working Capital Management and Firm Performance in the Indian Context. IJEFI. 2017;7(4):530-536. https://izlik.org/JA73MB59GW
Chicago
Tripathi, Nitya Nand, and Naseem Ahamed. 2017. “Time Taken to Reach the Performance Summit: Nature of Relation Between Working Capital Management and Firm Performance in the Indian Context”. International Journal of Economics and Financial Issues 7 (4): 530-36. https://izlik.org/JA73MB59GW.
EndNote
Tripathi NN, Ahamed N (December 1, 2017) Time Taken to Reach the Performance Summit: Nature of Relation between Working Capital Management and Firm Performance in the Indian Context. International Journal of Economics and Financial Issues 7 4 530–536.
IEEE
[1]N. N. Tripathi and N. Ahamed, “Time Taken to Reach the Performance Summit: Nature of Relation between Working Capital Management and Firm Performance in the Indian Context”, IJEFI, vol. 7, no. 4, pp. 530–536, Dec. 2017, [Online]. Available: https://izlik.org/JA73MB59GW
ISNAD
Tripathi, Nitya Nand - Ahamed, Naseem. “Time Taken to Reach the Performance Summit: Nature of Relation Between Working Capital Management and Firm Performance in the Indian Context”. International Journal of Economics and Financial Issues 7/4 (December 1, 2017): 530-536. https://izlik.org/JA73MB59GW.
JAMA
1.Tripathi NN, Ahamed N. Time Taken to Reach the Performance Summit: Nature of Relation between Working Capital Management and Firm Performance in the Indian Context. IJEFI. 2017;7:530–536.
MLA
Tripathi, Nitya Nand, and Naseem Ahamed. “Time Taken to Reach the Performance Summit: Nature of Relation Between Working Capital Management and Firm Performance in the Indian Context”. International Journal of Economics and Financial Issues, vol. 7, no. 4, Dec. 2017, pp. 530-6, https://izlik.org/JA73MB59GW.
Vancouver
1.Nitya Nand Tripathi, Naseem Ahamed. Time Taken to Reach the Performance Summit: Nature of Relation between Working Capital Management and Firm Performance in the Indian Context. IJEFI [Internet]. 2017 Dec. 1;7(4):530-6. Available from: https://izlik.org/JA73MB59GW