An Empirical Study of Working Capital Management

The concepts of working capital have been very imperative as they are essentially required to carry out the day-to-day operations. Working capital management practices have been considered as an important part of the corporate strategy with a view to enhancing value and have always proved to be an important element of competitive advantage among the business organisations (Deloof, 2003). In reality, it has become one of the challenging issues in organisations where managers dealing with finance are struggling to identify the exact requirement of working capital with a dynamic business environment. The real challenge is on zeroing down on the triggers or drivers that accelerate the need for stocking funds and holding the appropriate amount of funds at all times so as to maximise returns minimise risk and optimize costs. This research aims at understanding the following main question, ¿Does working capital management practices and policies impact the financial performance of BSE top 500 companies¿.