The real impact of Working Capital management is captured through its constituent policies such as Inventory, Receivable, and Payable managements. The aim of this study is to analyze the effects of Working Capital management i.e. inventory turnover period, the cycle of cash conversion, accounts receivable and payable periods, on the firm performance of cement and ceramics industry of Pakistan. The target population of the current research work is the whole cement and ceramics industry of Pakistan. The fixed-effect model was used for empirical analysis and incorporated by using the Stata software. The model parameters were tested at 1% and 5% level of significance. The outcomes of the fixed-effect model indicated that the account receivable period (AR) in days, inventory turnover (IT) in days and cash conversion cycle (CC) has an inverse nexus with the firm value of cement and ceramics industry of Pakistan. However, the account payable period has a positive relationship with the profitability of the cement and ceramics industry of Pakistan.
An Empirical Analysis of Working Capital Management of Selected Airline Companies in India