WORKING CAPITAL MANAGEMENT THEORIES PDF



Working Capital Management Theories Pdf

IMPACT OF RECEIVABLES MANAGEMENT ON WORKING CAPITAL. management of working capital so as to maintain a sound working capital position of a firm. Kaur (2010) describes Working Capital Management as all management decisions and actions that ordinarily influence the size and effectiveness of the working capital., Financial Management Principles and Practice, second edition is fundamentally designed to serve as an introduction to the study of Financial Management for students, Financial professionals, teachers and managers. The developments in the capital market and the new avenues available to tackle the traditional financial constraints have placed the.

UNIVERSITYOF EASTERN FINLAND Faculty of Social Sciences

HUMAN CAPITAL DEVELOPMENT AND ITS IMPACT ON FIRM. CHAPTER THREE: WORKING CAPITAL MANAGEMENT THEORIES 3.1. Concept of small and medium business P24 3.1.1. Concept of small and medium business in Europe P24 3.1.2. Concept of small and medium business in Vietnam P25 3.2. Financial concept for small and medium business P25 3.3 Working capital P26 3.3.1. Definition P26 3.3.2. Managing working capital P26 3.3.3. Industry …, management, in most cases, are considered from the perspective of working capital management as most of the indices used for measring corporate liquidity are a function of the components of working capital..

Abstract: Working capital management is a vital issue in financial decision making since it is a part of investment in asset and it directly affects the liquidity and profitability of the company. The study tries to investigate the relationship between working capital management components and the profitability of a sample of Indian manufacturing firms using a sample of 311Indian manufacturing the efficient working capital management of a firm, such as , profitability, its growth size/capital market access, asset tangibility, revenue volatility, age, operating cash flow, level of asymmetric information and even board characteristics.

Abstract: Working capital management is a vital issue in financial decision making since it is a part of investment in asset and it directly affects the liquidity and profitability of the company. The study tries to investigate the relationship between working capital management components and the profitability of a sample of Indian manufacturing firms using a sample of 311Indian manufacturing bournemouth university working capital management and profitabilty of uk firms: a contingency theory approach ishmael tingbani (mba, cbmba, mcib, ba)

Working capital management is a famous topic in scholars of corporate finance. Every business entity wants to enhance its profitability and liquidity with the passage of time. working capital management and profitability of manufacturing and construction firms in Kenya. In this In this context, the objective of the current study is to provide empirical evidences about the effect of working

The theory of working capital management contends that if working capital is managed according to prescriptive theory then it would be expected that businesses would invest in working capital capital, 10%. As long as the growth rate of FPV remains below 10% As long as the growth rate of FPV remains below 10% after year 4, it is best to wait and introduce at the end of year 3.

management, in most cases, are considered from the perspective of working capital management as most of the indices used for measring corporate liquidity are a function of the components of working capital. Working capital management (WCM) is essential to survive because of its effects on a firm’s profitability and risk, and consequently its value (Smith, 1980). WCM is the

management of working capital so as to maintain a sound working capital position of a firm. Kaur (2010) describes Working Capital Management as all management decisions and actions that ordinarily influence the size and effectiveness of the working capital. order theory (1984). Though this theory was developed for large quoted companies, it is equally applicable to medium and small firms. Firms tend to use cash credit as a first choice for financing their working capital needs. However, the excessive reliance on the banking system for working capital financing exerts some pressure on the banks and a significant part of available resources are

Objectives of Working Capital Management Smooth Working Capital Operating Cycle. This implies that the operating cycle i.e. the cycle starting from the acquisition of raw material to its conversion to cash should be smooth. Working capital management is the management of the company's monetary funds that deal with the short-term operating balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending …

Theory of working capital management - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Scribd is the world's largest social reading and publishing site. 5 Management of working capital (3) – Receivables and Payables 23 6 Management of working capital (4) – Cash 29 7 Investment appraisal – methods 37 8 Relevant cash flows for DCF 45 9 Discounted cash flow – further aspects 53 10 Investment appraisal under uncertainty 59 11 Sources of finance – equity 65 12 Sources of finance – debt 69 13 Capital structure and financial ratios 73 14

Germany Working capital management R&D funding Newman, Gunessee and Hilton (2012) China Theories of capital structure and cultural context in China Bhunia (2012) Europe Relationship between default behaviours of SMEs and the credit facets of their owners 2.1. Studies on causes of financial failure Prediction of Financial Failure Some researchers tried to predict small enterprise failure to Is profitability driven by working capital management? evidence for high-growth firms from emerging Europe Claudiu BoИ›oc et al. Journal of Business Economics and Management

EFFECTIVE WORKING CAPITAL MANAGEMENT AND THE. CHAPTER 17 International Portfolio Theory and Diversification CHAPTER 18 Working Capital Management CHAPTER 19 International Trade Finance Topics in, capital management routines and also the study corroborates that there is a positive relationship between working capital management practices and financial performance..

MSC Research project Repository Home

working capital management theories pdf

MSC Research project Repository Home. working capital management and profitability of manufacturing and construction firms in Kenya. In this In this context, the objective of the current study is to provide empirical evidences about the effect of working, Page 2 of 15 education and training (Little, 2003). Considering that the assumption accepts as a premise, the human capital expansively includes the meaning of ‘human as creator’ who frames knowledge, skills,.

Effect of Working Capital Management on the Profitability. management, in most cases, are considered from the perspective of working capital management as most of the indices used for measring corporate liquidity are a function of the components of working capital., The theory of working capital management contends that if working capital is managed according to prescriptive theory then it would be expected that businesses would invest in working capital, financ e working capital, monitor factors that influence working capital, manage cash, accounts receivable, inventory, accounts payable, the cash.

THEORIES AND APPROACHES – WCM « Working Capital Management

working capital management theories pdf

The effect of working capital management on the. the effect of working capital management on the profitability of agricultural firms listed in nairobi securities exchange by lucy mmbone luchinga capital management routines and also the study corroborates that there is a positive relationship between working capital management practices and financial performance..

working capital management theories pdf

  • Working Capital Management Practices and Financial
  • The Impact of Liquidity Management on the Profitability of

  • Working capital management (WCM) is essential to survive because of its effects on a firm’s profitability and risk, and consequently its value (Smith, 1980). WCM is the Working capital management (WCM) is essential to survive because of its effects on a firm’s profitability and risk, and consequently its value (Smith, 1980). WCM is the

    The theory of working capital management contends that if working capital is managed according to prescriptive theory then it would be expected that businesses would invest in working capital, financ e working capital, monitor factors that influence working capital, manage cash, accounts receivable, inventory, accounts payable, the cash Abstract: Working capital management is a vital issue in financial decision making since it is a part of investment in asset and it directly affects the liquidity and profitability of the company. The study tries to investigate the relationship between working capital management components and the profitability of a sample of Indian manufacturing firms using a sample of 311Indian manufacturing

    When traditional corporate financial theory breaks down, the solution is: costs, capital structure is irrelevant. n The value of a firm is independent of its debt ratio. Aswath Damodaran 16 Implications of MM Theorem (a) Leverage is irrelevant. A firm's value will be determined by its project cash flows. (b) The cost of capital of the firm will not change with leverage. As a firm increases Objective of Working Capital Management The goal of working capital management is to manage the firm’s current assets and liabilities in such a way that a satisfactory level of working capital is maintained. The interaction between current assets and current liabilities is, therefore the main theme of the theory of the working capital management.

    Germany Working capital management R&D funding Newman, Gunessee and Hilton (2012) China Theories of capital structure and cultural context in China Bhunia (2012) Europe Relationship between default behaviours of SMEs and the credit facets of their owners 2.1. Studies on causes of financial failure Prediction of Financial Failure Some researchers tried to predict small enterprise failure to bournemouth university working capital management and profitabilty of uk firms: a contingency theory approach ishmael tingbani (mba, cbmba, mcib, ba)

    Abstract. In the last decade, special attention has been paid to the issue of working capital management. Evidently, many authors suggest that the optimum level of working capital depends on the industry and the nature of its transactions (Walker, 1964; Outram, 1997, Ozbayrak and Akgun, 2006). Is profitability driven by working capital management? evidence for high-growth firms from emerging Europe Claudiu BoИ›oc et al. Journal of Business Economics and Management

    order theory (1984). Though this theory was developed for large quoted companies, it is equally applicable to medium and small firms. Firms tend to use cash credit as a first choice for financing their working capital needs. However, the excessive reliance on the banking system for working capital financing exerts some pressure on the banks and a significant part of available resources are Working Capital Management Strategies / Approaches There are broadly 3 working capital management strategies/ approaches to choose the mix of long and short-term funds for financing the net working capital of a firm viz. Conservative, Aggressive, Hedging (Or Maturity Matching) approach.

    bournemouth university working capital management and profitabilty of uk firms: a contingency theory approach ishmael tingbani (mba, cbmba, mcib, ba) 24/01/2008В В· Your blog on THEORIES AND APPROACHES as a part of Working Capital Management is very nice. I love to read it. I have notice that you have good content on I love to read it. I have notice that you have good content on Insurance SFA and Agency Management Software .

    Liability Management Theory Liquidity management theory according to Dodds (1982) consists of the activities involved in obtaining funds from depositors and other creditors (from the market especially) and determining the appropriate mix of funds for a particularly bank. Mises's 1944 book applies his insight concerning economic calculation to delineate the difference between bureaucratic management and profit-and-loss management in the free market. The implications of his argument are far reaching.

    payables management, this will be followed by the designed methodology, the working capital theories such as the agency / stakeholder theory, risk and return theory, the resource-based and the cash conversion cycle theories Objective of Working Capital Management The goal of working capital management is to manage the firm’s current assets and liabilities in such a way that a satisfactory level of working capital is maintained. The interaction between current assets and current liabilities is, therefore the main theme of the theory of the working capital management.

    An essay on the history of civil society by Adam Ferguson; 30 editions; First published in 1767; Subjects: Accessible book, Civil society, Civilization, History, Social sciences Adam ferguson essay on the history of civil society pdf Outlook An essay on the history of civil society by Adam Ferguson; 30 editions; First published in 1767; Subjects: Accessible book, Civil society, Civilization, History, Social sciences

    Impact of Working Capital Management on Firms’ Performance

    working capital management theories pdf

    Financial Management in SMEs ERSJ. the efficient working capital management of a firm, such as , profitability, its growth size/capital market access, asset tangibility, revenue volatility, age, operating cash flow, level of asymmetric information and even board characteristics., working capital management and profitability of manufacturing and construction firms in Kenya. In this In this context, the objective of the current study is to provide empirical evidences about the effect of working.

    The effect of company characteristics on working capital

    THEORIES AND APPROACHES – WCM « Working Capital Management. the efficient working capital management of a firm, such as , profitability, its growth size/capital market access, asset tangibility, revenue volatility, age, operating cash flow, level of asymmetric information and even board characteristics., Abstract: Working capital management is a vital issue in financial decision making since it is a part of investment in asset and it directly affects the liquidity and profitability of the company. The study tries to investigate the relationship between working capital management components and the profitability of a sample of Indian manufacturing firms using a sample of 311Indian manufacturing.

    capital management routines and also the study corroborates that there is a positive relationship between working capital management practices and financial performance. CHAPTER THREE: WORKING CAPITAL MANAGEMENT THEORIES 3.1. Concept of small and medium business P24 3.1.1. Concept of small and medium business in Europe P24 3.1.2. Concept of small and medium business in Vietnam P25 3.2. Financial concept for small and medium business P25 3.3 Working capital P26 3.3.1. Definition P26 3.3.2. Managing working capital P26 3.3.3. Industry …

    Objective of Working Capital Management The goal of working capital management is to manage the firm’s current assets and liabilities in such a way that a satisfactory level of working capital is maintained. The interaction between current assets and current liabilities is, therefore the main theme of the theory of the working capital management. Management of working capital management was found to have a significant impact on both International Journal of Economic Practices and Theories, …

    Financial Management Principles and Practice, second edition is fundamentally designed to serve as an introduction to the study of Financial Management for students, Financial professionals, teachers and managers. The developments in the capital market and the new avenues available to tackle the traditional financial constraints have placed the Working capital management is the management of the company's monetary funds that deal with the short-term operating balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending …

    CHAPTER THREE: WORKING CAPITAL MANAGEMENT THEORIES 3.1. Concept of small and medium business P24 3.1.1. Concept of small and medium business in Europe P24 3.1.2. Concept of small and medium business in Vietnam P25 3.2. Financial concept for small and medium business P25 3.3 Working capital P26 3.3.1. Definition P26 3.3.2. Managing working capital P26 3.3.3. Industry … capital and short-term financing are referred to as working capital management (Nimalathason, 2010) . It is the regulation, adjustment and control of the balance of current assets and current

    • Theory of Working Capital Management • Factors influencing Working Capital Requirements • Principles of Working Capital Management • The Operating Cycle • Duration of Operating Cycle • Determinants of Working Capital • Forecasting of Working Capital • Control of Working Capital • Adequacy of Working Capital • Sources of Working Capital • Structure of Working Capital 1 management of working capital means that current assets are quickly transferred into cash, in this way to move the balance from average investments in inventory and accounts receivable to cash and result in high cash holdings.

    theories of working capital management.pdf FREE PDF DOWNLOAD NOW!!! Source #2: theories of working capital management.pdf FREE PDF DOWNLOAD Working capital - Wikipedia, the … involvement in working capital management is increasing extensively and that there are great potential for improvements within this area as companies still has lots of capital tied up.

    CHAPTER 17 International Portfolio Theory and Diversification CHAPTER 18 Working Capital Management CHAPTER 19 International Trade Finance Topics in The theory of working capital management contends that if working capital is managed according to prescriptive theory then it would be expected that businesses would invest in working capital, financ e working capital, monitor factors that influence working capital, manage cash, accounts receivable, inventory, accounts payable, the cash

    Abstract. In the last decade, special attention has been paid to the issue of working capital management. Evidently, many authors suggest that the optimum level of working capital depends on the industry and the nature of its transactions (Walker, 1964; Outram, 1997, Ozbayrak and Akgun, 2006). When traditional corporate financial theory breaks down, the solution is: costs, capital structure is irrelevant. n The value of a firm is independent of its debt ratio. Aswath Damodaran 16 Implications of MM Theorem (a) Leverage is irrelevant. A firm's value will be determined by its project cash flows. (b) The cost of capital of the firm will not change with leverage. As a firm increases

    Thus, this study examined the impact of working capital management on firms‟ performance by using audited financial statements of a sample of 11 metal manufacturing private limited companies in Addis Ababa, Ethiopia for the period of 2008 to 2012. Is profitability driven by working capital management? evidence for high-growth firms from emerging Europe Claudiu Boțoc et al. Journal of Business Economics and Management

    Intl. Res. J. Appl. Basic. Sci. Vol., 4 (9), 2491-2493, 2013 build-up a theory of working capital management by developing three prepositions. The theory of working capital management contends that if working capital is managed according to prescriptive theory then it would be expected that businesses would invest in working capital

    - The traditional management of working capital based on accounting convention (relative to an optimum net investment in inventory, debtors and cash) may be way off target. - As a consequence, the derivation of anticipated net cash inflows associated with a firm’s capital investments, bournemouth university working capital management and profitabilty of uk firms: a contingency theory approach ishmael tingbani (mba, cbmba, mcib, ba)

    management of working capital means that current assets are quickly transferred into cash, in this way to move the balance from average investments in inventory and accounts receivable to cash and result in high cash holdings. CHAPTER 17 International Portfolio Theory and Diversification CHAPTER 18 Working Capital Management CHAPTER 19 International Trade Finance Topics in

    Objectives of Working Capital Management Smooth Working Capital Operating Cycle. This implies that the operating cycle i.e. the cycle starting from the acquisition of raw material to its conversion to cash should be smooth. As a main part of financial management, working capital management shows its importance to the enterprise's development. This paper constructs a management system based on the modifying cycle of working capital management performance. Especially, the system includes five elements, they are management goal, business environment, management policy, management mode and management …

    CHAPTER THREE: WORKING CAPITAL MANAGEMENT THEORIES 3.1. Concept of small and medium business P24 3.1.1. Concept of small and medium business in Europe P24 3.1.2. Concept of small and medium business in Vietnam P25 3.2. Financial concept for small and medium business P25 3.3 Working capital P26 3.3.1. Definition P26 3.3.2. Managing working capital P26 3.3.3. Industry … Human Capital Development and Its Impact on Firm Performance: Evidence from Developmental Economics 267 concept as traditionally defined to say that expenditures on education, training, and medical care, etc., are

    - The traditional management of working capital based on accounting convention (relative to an optimum net investment in inventory, debtors and cash) may be way off target. - As a consequence, the derivation of anticipated net cash inflows associated with a firm’s capital investments, Is profitability driven by working capital management? evidence for high-growth firms from emerging Europe Claudiu Boțoc et al. Journal of Business Economics and Management

    5 Management of working capital (3) – Receivables and Payables 23 6 Management of working capital (4) – Cash 29 7 Investment appraisal – methods 37 8 Relevant cash flows for DCF 45 9 Discounted cash flow – further aspects 53 10 Investment appraisal under uncertainty 59 11 Sources of finance – equity 65 12 Sources of finance – debt 69 13 Capital structure and financial ratios 73 14 capital, 10%. As long as the growth rate of FPV remains below 10% As long as the growth rate of FPV remains below 10% after year 4, it is best to wait and introduce at the end of year 3.

    Working Capital Management Theory and Strategy

    working capital management theories pdf

    MSC Research project Repository Home. • Theory of Working Capital Management • Factors influencing Working Capital Requirements • Principles of Working Capital Management • The Operating Cycle • Duration of Operating Cycle • Determinants of Working Capital • Forecasting of Working Capital • Control of Working Capital • Adequacy of Working Capital • Sources of Working Capital • Structure of Working Capital 1, 2005).The effect of working capital management on profitability of SMEs is further emphasized by evaluating finance theory, liquidity theory and corporate risk management theories..

    Paper F9 FinAnciAl MAnAgeMent img.gaodun.cn

    working capital management theories pdf

    MSC Research project Repository Home. capital and short-term financing are referred to as working capital management (Nimalathason, 2010) . It is the regulation, adjustment and control of the balance of current assets and current the efficient working capital management of a firm, such as , profitability, its growth size/capital market access, asset tangibility, revenue volatility, age, operating cash flow, level of asymmetric information and even board characteristics..

    working capital management theories pdf

  • PART Topics in International Finance Pearson Education
  • Corporate Finance Capital Structure and Financing Decisions
  • Evaluating the Impact of Working Capital Management

  • Working capital management is the management of the company's monetary funds that deal with the short-term operating balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending … CHAPTER 17 International Portfolio Theory and Diversification CHAPTER 18 Working Capital Management CHAPTER 19 International Trade Finance Topics in

    When traditional corporate financial theory breaks down, the solution is: costs, capital structure is irrelevant. n The value of a firm is independent of its debt ratio. Aswath Damodaran 16 Implications of MM Theorem (a) Leverage is irrelevant. A firm's value will be determined by its project cash flows. (b) The cost of capital of the firm will not change with leverage. As a firm increases CHAPTER THREE: WORKING CAPITAL MANAGEMENT THEORIES 3.1. Concept of small and medium business P24 3.1.1. Concept of small and medium business in Europe P24 3.1.2. Concept of small and medium business in Vietnam P25 3.2. Financial concept for small and medium business P25 3.3 Working capital P26 3.3.1. Definition P26 3.3.2. Managing working capital P26 3.3.3. Industry …

    Working capital management is the management of the company's monetary funds that deal with the short-term operating balance of current assets and current liabilities; the focus here is on managing cash, inventories, and short-term borrowing and lending … working capital management and profitability of manufacturing and construction firms in Kenya. In this In this context, the objective of the current study is to provide empirical evidences about the effect of working

    Page 2 of 15 education and training (Little, 2003). Considering that the assumption accepts as a premise, the human capital expansively includes the meaning of ‘human as creator’ who frames knowledge, skills, Objectives of Working Capital Management Smooth Working Capital Operating Cycle. This implies that the operating cycle i.e. the cycle starting from the acquisition of raw material to its conversion to cash should be smooth.

    CHAPTER THREE: WORKING CAPITAL MANAGEMENT THEORIES 3.1. Concept of small and medium business P24 3.1.1. Concept of small and medium business in Europe P24 3.1.2. Concept of small and medium business in Vietnam P25 3.2. Financial concept for small and medium business P25 3.3 Working capital P26 3.3.1. Definition P26 3.3.2. Managing working capital P26 3.3.3. Industry … As a main part of financial management, working capital management shows its importance to the enterprise's development. This paper constructs a management system based on the modifying cycle of working capital management performance. Especially, the system includes five elements, they are management goal, business environment, management policy, management mode and management …

    Theory of working capital management - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Scribd is the world's largest social reading and publishing site. The theory of working capital management contends that if working capital is managed according to prescriptive theory then it would be expected that businesses would invest in working capital, financ e working capital, monitor factors that influence working capital, manage cash, accounts receivable, inventory, accounts payable, the cash

    Download free eBooks at bookboon.com 12 The Objectives and Structure of Working Capital Management Working Capital Management 2.2 The Objectives of Working Capital Management he internal management of working capital can be distinguished from the capital budgeting decision that it underpins by: (a) he Production Cycle Unlike ixed asset investment, the working capital planning … Working capital management is one of the most important areas while making the liquidity and profitability comparisons among firms (Eljelly, 2004) involving the decision of the amount and composition of current assets and the financing of these

    As a main part of financial management, working capital management shows its importance to the enterprise's development. This paper constructs a management system based on the modifying cycle of working capital management performance. Especially, the system includes five elements, they are management goal, business environment, management policy, management mode and management … payables management, this will be followed by the designed methodology, the working capital theories such as the agency / stakeholder theory, risk and return theory, the resource-based and the cash conversion cycle theories

    For the present study impact of receivables management on working capital and profitability four cement companies viz., India Cement Ltd, Andhra Cement Ltd, Madras Cement Ltd and Bheema Cement Ltd were selected purposively to analyze the data compiled from the financial statements the effect of working capital management on the profitability of agricultural firms listed in nairobi securities exchange by lucy mmbone luchinga

    For the present study impact of receivables management on working capital and profitability four cement companies viz., India Cement Ltd, Andhra Cement Ltd, Madras Cement Ltd and Bheema Cement Ltd were selected purposively to analyze the data compiled from the financial statements Objectives of Working Capital Management Smooth Working Capital Operating Cycle. This implies that the operating cycle i.e. the cycle starting from the acquisition of raw material to its conversion to cash should be smooth.

    Working capital management is one of the most important areas while making the liquidity and profitability comparisons among firms (Eljelly, 2004) involving the decision of the amount and composition of current assets and the financing of these capital and short-term financing are referred to as working capital management (Nimalathason, 2010) . It is the regulation, adjustment and control of the balance of current assets and current

    Intl. Res. J. Appl. Basic. Sci. Vol., 4 (9), 2491-2493, 2013 build-up a theory of working capital management by developing three prepositions. 5 Management of working capital (3) – Receivables and Payables 23 6 Management of working capital (4) – Cash 29 7 Investment appraisal – methods 37 8 Relevant cash flows for DCF 45 9 Discounted cash flow – further aspects 53 10 Investment appraisal under uncertainty 59 11 Sources of finance – equity 65 12 Sources of finance – debt 69 13 Capital structure and financial ratios 73 14

    Working capital management is one of the most important areas while making the liquidity and profitability comparisons among firms (Eljelly, 2004) involving the decision of the amount and composition of current assets and the financing of these capital structure and working capital management. While the former two focus on financing and managing long- While the former two focus on financing and managing long- term investment decisions, the latter deals with the management of short-term capital requirements of the firm.

    management, in most cases, are considered from the perspective of working capital management as most of the indices used for measring corporate liquidity are a function of the components of working capital. capital, 10%. As long as the growth rate of FPV remains below 10% As long as the growth rate of FPV remains below 10% after year 4, it is best to wait and introduce at the end of year 3.

    The theory of working capital management contends that if working capital is managed according to prescriptive theory then it would be expected that businesses would invest in working capital, financ e working capital, monitor factors that influence working capital, manage cash, accounts receivable, inventory, accounts payable, the cash Objective of Working Capital Management The goal of working capital management is to manage the firm’s current assets and liabilities in such a way that a satisfactory level of working capital is maintained. The interaction between current assets and current liabilities is, therefore the main theme of the theory of the working capital management.

    management of working capital so as to maintain a sound working capital position of a firm. Kaur (2010) describes Working Capital Management as all management decisions and actions that ordinarily influence the size and effectiveness of the working capital. Modern theories offer two alternative strategies of working capital management, that is, conservative working capital management policy and aggressive working capital management policy. The literature contains an

    order theory (1984). Though this theory was developed for large quoted companies, it is equally applicable to medium and small firms. Firms tend to use cash credit as a first choice for financing their working capital needs. However, the excessive reliance on the banking system for working capital financing exerts some pressure on the banks and a significant part of available resources are Page 2 of 15 education and training (Little, 2003). Considering that the assumption accepts as a premise, the human capital expansively includes the meaning of ‘human as creator’ who frames knowledge, skills,