1. bookVolume 5 (2022): Issue 2 (June 2022)
Journal Details
License
Format
Journal
eISSN
2631-987X
First Published
07 Jun 2018
Publication timeframe
2 times per year
Languages
English
access type Open Access

Working Capital Management Policies for Managers to Improve Profitability

Published Online: 14 Jun 2022
Volume & Issue: Volume 5 (2022) - Issue 2 (June 2022)
Page range: 66 - 78
Journal Details
License
Format
Journal
eISSN
2631-987X
First Published
07 Jun 2018
Publication timeframe
2 times per year
Languages
English
Abstract

Efficient working capital management is a requisite and is crucial for small firms’ profitability. The main reason for most SMEs’ failure is the incompetence of their managers to appropriately control and plan their current liabilities and current assets (Smith, 1973). Keeping in view the SMEs’ difficulties in proper working capital management and the significance of working capital management in profitability, survival and growth of SMEs, this research aims to analyse the association between individual working capital components, corporate governance characteristics and alternate proxies of profitability in SMEs. The study has significance for managers in planning and managing working capital in such a way that they can increase their profitability.

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