Working Capital Management and Working Capital Policies on Firm’s Value

What is it about?

The aim of this paper is to investigate the influence between working capital management and firm value in the Sri Lankan context. 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. T

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Why is it important?

Seven panel data regression main models have been developed to inspect the impact of working capital management components, and working capital management policies on firm’s value at the significance level of 0.01, 0.05, and 0.1.

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