Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Working Capital Management Impact on Corporate Profitability Relation with Corporate Governance:Evidence from Indian Manufacturing Sector


Affiliations
1 Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar, Haryana, India
     

   Subscribe/Renew Journal


The present study shows that the impact of corporate governance and working capital management on the corporate profitability of Indian manufacturing companies. A sample of 50 manufacturing companies for a period of 6 year has been examined (from 2010-11 to 2015-16). The corporate governance has been measured by CEO duality, board committee, board size, non executive directors, board meeting, audit committee members and directors remuneration. The working capital management has been measured by inventory, accounts receivable period, accounts payable period and cash holding. The profitability has been measured by the profit after tax. The correlation matrix and regression model has been used in study for analysis purpose. The finding of study shows that the corporate governance and working capital management may be helpful in improvement of corporate profitability. The findings of study may be helpful for managers, investors and stakeholders.

Keywords

Corporate Governance, Working Capital, Profitability, Board Size, Director’s Remuneration.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Aggarwal, P. (2013) Corporate governance and corporate profitability: Are they Related? A study in Indian context. International Journal of Scientific and Research Publications, 3(12), 1-8.

  • Babatunde, A. A., & Akeju, J. B. (2015). The impact of corporate governance on firm’s profitability in Nigeria. International Journal of Business and Management Invention, 5(8), 69-72.

  • Emmanuel, S. A., & Hodo, B. R. (2012) Does corporate governance affect bank profitability? Evidence from Nigeria. American International Journal of Contemporary Research, 2, 135-145.

  • Garg, A. K., & Gumbochuma, I. (2015). Relationship between working capital management and profitability in JSE listed retail sector companies. Investment Management and Financial Innovations, 12(2), 127-135.

  • Gupta, M., & Newalkar, G. (2015) Impact of Corporate Governance on the Profitability of a Firm: Empirical Study on National Stock Exchange. 2nd International Conference on Science, Technology and Management, 572- 578.

  • Indian Board. (2017). Audit Committee. Retrieved from http://www.indianboards.com/files/clause_49.pdf (assessed on 10/12/2017).

  • Indian Board. (2017). Board of Directors. Retrieved from http://www.indianboards.com/files/clause_49.pdf (assessed on 10/12/ 2017).

  • Indian Board. (2017). Non Executive Directors. Retrieved from http://www.indianboards.com/files/clause_49.pdf (assessed on 10/12/ 2017).

  • Kennedy, P. (1985). A guide to econometrics (2nd ed.). Cambridge, MA: MIT Press.

  • Latif, B., Shahid, M. N., Haq, M. Z. U, Waqas, H. M., & Arahad, A. (2013). Impact of corporate governance on firm performance: Evidence from sugar mills of Pakistan. European Journal of Business and Management, 5(1).

  • Makori, D. M., & Jagongo, A. (2013) Working capital management and firm profitability: Empirical evidence from manufacturing and construction firms listed on Nairobi securities exchange, Kenya. International Journal of Accounting and Taxation, 1(1), 1-14.

  • Narwal, K. P., & Jindal, S. (2017) Corporate governance mechanism and its impact on cash conversion cycle: Evidence from Indian manufacturing sector. Asian Journal of Research in Banking and Finance, 7(10), 35-45.

  • Narwal, K. P., & Jindal, S. (2015). The impact of corporate governance on the profitability: An empirical study of Indian textile industry. International Journal of Research in Management, Science & Technology, 3(2), 81-85.


Abstract Views: 485

PDF Views: 0




  • Working Capital Management Impact on Corporate Profitability Relation with Corporate Governance:Evidence from Indian Manufacturing Sector

Abstract Views: 485  |  PDF Views: 0

Authors

Karam Pal Narwal
Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar, Haryana, India
Sonia Jindal
Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar, Haryana, India

Abstract


The present study shows that the impact of corporate governance and working capital management on the corporate profitability of Indian manufacturing companies. A sample of 50 manufacturing companies for a period of 6 year has been examined (from 2010-11 to 2015-16). The corporate governance has been measured by CEO duality, board committee, board size, non executive directors, board meeting, audit committee members and directors remuneration. The working capital management has been measured by inventory, accounts receivable period, accounts payable period and cash holding. The profitability has been measured by the profit after tax. The correlation matrix and regression model has been used in study for analysis purpose. The finding of study shows that the corporate governance and working capital management may be helpful in improvement of corporate profitability. The findings of study may be helpful for managers, investors and stakeholders.

Keywords


Corporate Governance, Working Capital, Profitability, Board Size, Director’s Remuneration.

References