The DOI matches its Crossref record; 65 of the 65 references it cites were found in a registry or an index.
Influence of working capital efficiency on firm’s composite financial performance: evidence from India
Abstract
Purpose The objective of this paper is to investigate the effect of working capital efficiency (WCE) and its components on the composite financial performance of a sample of Indian firms. Design/methodology/approach Our sample includes 796 non-financial listed firms from 2015–16 to 2021–22. Sample firms’ profitability, liquidity, solvency, cash flow management, and financial and operational leverage have been used to classify them into companies with high composite financial performance (HCFP) and with low composite financial performance (LCFP) by using K-Means Clustering technique. A composite financial performance score (CFPS) of 1 has been assigned to HCFP and 0 to LCFP. We have used logistic regression models with fixed effect to estimate the effect of cash conversion cycle (CCC) and its components, i.e. inventory days, accounts receivable days and accounts payable days on CFPS in the presence of control variables such as growth, leverage, firm size, and age. Findings The study finds that CCC and inventory days are inversely associated with CFPS. This finding shows that the firms’ WCE leads to superior financial performance on a composite basis. Research limitations/implications The research findings are based on samples drawn from the population of the listed Indian non-financial companies. Since the operation, financial practices, working capital policies, and management styles of firms vary greatly among nations, the results of this study should be extended to firms in…
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“Nonetheless, various researchers conducted research on the WCM and performance and reported mixed results, namely a positive relationship (Fungai 2024;Kumar et al. 2024;Šeligová 2021;Seth et al. 2020) and a negative relationship (Jaworski and Czerwonka 2024;Mandipa and Sibindi 2022;Umar and Al-Faryan 2024).”
From The Effects of Working Capital Management on the Financial Performance of Commercial and Service Firms Listed on the Nairobi Securities Exchange in Kenya (2024) · cites this paper as Kumar et al. 2024
In the citing paper
“Nonetheless, the finding for Model 2 in Table 2 is consistent with Briones et al. (2024), Kumar et al. (2024), Mandipa and Sibindi (2022), Seth et al. (2020), and Panigrahi (2024).”
From The Effects of Working Capital Management on the Financial Performance of Commercial and Service Firms Listed on the Nairobi Securities Exchange in Kenya (2024) · cites this paper as Kumar et al. (2024)
In the citing paper
“Studies conducted by Fungai (2024), Šeligová (2021), Seth et al. (2020), found a positive relationship between WCM and profitability, whereas Kumar et al. (2024), Mandipa and Sibindi (2022), Jaworski and Czerwonka (2024) reported a negative relationship.”
From The Effects of Working Capital Management on the Financial Performance of Commercial and Service Firms Listed on the Nairobi Securities Exchange in Kenya (2024) · cites this paper as Kumar et al. (2024)
Citations
Cites
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(2007) · Cited by 861
Working capital management, corporate performance, and financial constraints
Baños‐Caballero, S., García‐Teruel, P. J., & Solano, P. M. (2013) · Journal of Business Research · doi:10.1016/j.jbusres.2013.01.016 · Cited by 742
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Research works printed but not linked: 7
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Cited by
Kotcharin, S., & Jantadej, K. (2024) · Cogent Business & Management · doi:10.1080/23311975.2024.2396544 · Cited by 16
Wanzala, R. W., & Obokoh, L. (2024) · Risks · doi:10.3390/risks12080119 · Cited by 8
Mavrommati, A., & Pliakoura, A. (2025) · International Journal of Productivity and Performance Management · doi:10.1108/ijppm-04-2025-0279 · Cited by 6
Karakolias, S., & Polyzos, N. M. (2024) · Corporate Governance · doi:10.1108/cg-06-2024-0346 · Cited by 6
Essel, R. E. (2025) · Journal of African Business · doi:10.1080/15228916.2025.2505359 · Cited by 6
Metadata
- Authors
- Kumar, S. S., Sawarni, K. S., Roy, S., & G, N.
- Affiliations
- Mahatma Gandhi Central University (IN)
- Manipal Academy of Higher Education (IN)
- Corresponding author
- Kumar, Shiv Shankar
- Venue
- International Journal of Productivity and Performance Management
- Publisher
- Emerald
- Published
- 2024-04-04
- Volume
- 73
- Issue
- 9
- Pages
- 2787-2806
- ISSN
- 0043-8022 (ISSN-L)
- 1741-0401
- OpenAlex
- W4393898969
- Cited by
- 14
- References
- 65
- Citations by year
- 2026: 5 · 2025: 5 · 2024: 4
- FWCI
- 13.93
- Type
- journal article
- Language
- en
- Open access
- closed
- Licence
- www.emerald.com/insight/site-policies (tdm)
- Locations
- International Journal of Productivity and Performance Management (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Accounting › Working Capital and Financial Performance
- Social Sciences › Decision Sciences › Management Science and Operations Research › Supply Chain and Inventory Management
- Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
- Keywords
- working capital efficiency, cash conversion cycle, inventory days, working capital management, Indian listed companies, non-financial firms, inventory management, credit sales, vendor payments, portfolio optimization, firm size, firm age, profitability, liquidity, solvency, cash flow management, leverage, operating leverage
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