<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Efficient working capital management is a requisite and is crucial for small firms’ profitability. The main reason for most SMEs’ failure is the incompetence of their managers to appropriately control and plan their current liabilities and current assets (Smith, 1973). Keeping in view the SMEs’ difficulties in proper working capital management and the significance of working capital management in profitability, survival and growth of SMEs, this research aims to analyse the association between individual working capital components, corporate governance characteristics and alternate proxies of profitability in SMEs. The study has significance for managers in planning and managing working capital in such a way that they can increase their profitability.</p>
</abstract>

Efficient working capital management is a requisite and is crucial for small firms’ profitability. The main reason for most SMEs’ failure is the incompetence of their managers to appropriately control and plan their current liabilities and current assets (Smith, 1973). Keeping in view the SMEs’ difficulties in proper working capital management and the significance of working capital management in profitability, survival and growth of SMEs, this research aims to analyse the association between individual working capital components, corporate governance characteristics and alternate proxies of profitability in SMEs. The study has significance for managers in planning and managing working capital in such a way that they can increase their profitability.

Working Capital Management Policies for Managers to Improve Profitability

Management Consulting Journal

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Working Capital Management Policies for Managers to Improve Profitability"}

Efficient working capital management is a requisite and is crucial for small firms’ profitability. The main reason for most SMEs’ failure is the incompetence...

Working Capital Management Policies for Managers to Improve Profitability

Publié en ligne: 14 juin 2022

Pages: 66 - 78

DOI: https://doi.org/10.2478/mcj-2022-0008

© 2022 Percy Kandukira, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.