Working Capital Management and Working Capital Policies on Firm’s Value: A Special Reference to the Listed Companies in Sri Lanka

Delima, Vianny Jeniston (2023) Working Capital Management and Working Capital Policies on Firm’s Value: A Special Reference to the Listed Companies in Sri Lanka. Asian Journal of Economics, Business and Accounting, 23 (20). pp. 122-137. ISSN 2456-639X

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Abstract

The aim of this paper is to investigate the influence between working capital management and firm value in the Sri Lankan context. This research has used pooled panel data of 475 observations from 95 listed firms across 18 sectors. Secondary data which are gathered from the annual report published by the CSE for the five years period from 2018/2019 to 2022/2023. The findings states that this model in the study explains a rise in the number of days in the cash conversion period decreased the firm's valuation by 43%. Further, working capital investment policy increases, or in other terms, the degree of WCIP’s aggressiveness rises, the firm value decreases, and increases in financing policy leads to decreases in firm value. This study includes both working capital investment policy and working capital financing policy with control variables in Sri Lanka. This research provides limited literature on working capital management, working capital policies, and firm value in Sri Lanka.

Item Type: Article
Subjects: Eprints AP open Archive > Social Sciences and Humanities
Depositing User: Unnamed user with email admin@eprints.apopenarchive.com
Date Deposited: 14 Oct 2023 11:13
Last Modified: 14 Oct 2023 11:13
URI: http://asian.go4sending.com/id/eprint/1307

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