4TH International Congress on Technology - Engineering & SCIENCE - Kuala Lumpur - Malaysia (2017-08-05)

Does Working Capital Management Create Value? Empirical Evidence From Pakistan Stock Exchange

Corporate finance is concerned with three main areas: Capital budgeting, capital Structure and working capital management. It is assumed that efficiency in working capital management is vital for production/manufacturing firms as it accounts for half of its total assets. This study aims to examine that effect of working capital management on performance of firms listed at Pakistan Stock exchange for the period of ten years. Economics value added (EVA) will be used as a performance indicator in this study. The panel data regression methodology will be used to test the statistical significance of the data. The present study will be unique in its kind as this area has been less explored especially in context of developing economics such as Pakistan. This study will contribute in the exiting literature by examining the effect of working capital on firms ability to create value .It is assumed that findings of the study will be line with the existing study.
Keywords: Performance, Working Capital, Economic value added
ADNAN KHALID, BILAL AHMAD, NAVEED UL HASSAN