FEATURE PEER-REVIEWED ARTICLE

• RELATIONSHIP OF WORKING CAPITAL TO CORPORATE PERFORMANCE AND STOCK PRICE: EVIDENCE FROM THE MANUFACTURING SECTOR OF PAKISTAN

  Noheed Khan (College of Commerce, Government College University Faisalabad (GCUF), PAKISTAN),
  Muhammad Bilal, Imran Riaz Malik, Abdul Rauf Kashif, Abdul Rehman Sajid (Department of Business Administration, Iqra University Islamabad Campus, PAKISTAN).
  

  Disciplinary: Management Sciences (Finance).

  ➤ FullText

  doi: 10.14456/ITJEMAST.2020.267

  Keywords: Current ratio (CR); Cash; Stock Price (SP); Net operating profitability; Working capital management (WCM); Cash conversion cycle (CCC); Inventory turnover.

  Abstract
  Working capital plays a significant role in the manufacturing sector. The recent study is based on the manufacturing sector of Pakistan. Thirteen manufacturing sectors were selected for this research. For analyzing the results, a univariate test was performed under a generalized linear model. The results reveal that cash has a negative impact on operating profitability. The Construction & Materials, Automobiles & Parts, Forestry & Paper, and Food Product sectors experience negative impacts on operating profitability. The Pharma & Biotech and the Chemicals sectors see highly negative impacts on operating profitability. Working capital management in some sectors have positive and some have negative impacts on the stock price.
  

  Paper ID: 11A13U

  Cite this article:

  Khan, N., Bilal, M., Malik, I.R., Kashif, A.R., Sajid, A.R. (2020). RELATIONSHIP OF WORKING CAPITAL TO CORPORATE PERFORMANCE AND STOCK PRICE: EVIDENCE FROM THE MANUFACTURING SECTOR OF PAKISTAN. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 11(13), 11A13U, 1-11.

  
  
  

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