IDEAS home Printed from https://ideas.repec.org/a/ids/ijecbr/v23y2022i1p68-91.html
   My bibliography  Save this article

Corporate governance, working capital management and profitability: empirical insights for Indian pharmaceutical firms

Author

Listed:
  • Najib H.S. Farhan
  • Mosab I. Tabash
  • Faozi A. Almaqtari
  • Amgad S.D. Khaled

Abstract

The current study examines the inter-relationships between working capital management (WCM) and the profitability of Indian pharmaceutical firms. The impact of corporate governance on the link between WCM and profitability is also addressed. The financial data of 82 Indian pharmaceutical firms for the period from 2008 to 2017 are used. Fixed and random effect regression models are used for estimating the results. Findings show that there is a negative and significant impact on the number of days' payable deferral period, number of days' collection period, number of days' inventory holding period, and operating cycle on the profitability of Indian pharmaceutical firms. Moreover, findings reveal that board of directors' composition does not moderate the association between working capital components (WCCs) and the profitability of Indian pharmaceutical firms. The researchers believe that this study perhaps is the first study that evaluates the impact of corporate governance on the association between WCCs and firms' profitability in the Indian context.

Suggested Citation

  • Najib H.S. Farhan & Mosab I. Tabash & Faozi A. Almaqtari & Amgad S.D. Khaled, 2022. "Corporate governance, working capital management and profitability: empirical insights for Indian pharmaceutical firms," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 23(1), pages 68-91.
    • Handle: RePEc:ids:ijecbr:v:23:y:2022:i:1:p:68-91
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=119350
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecbr:v:23:y:2022:i:1:p:68-91. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=310 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.