Corporate governance, working capital management, and firm performance: some new insights from agency theory
Corporate governance, working capital management, and firm performance: some new insights from agency theory
The role of corporate governance in performance of firms has been widely discussed in the extant literature. In contrast to examining direct relationships, this study investigates the mediating role of working capital management within these connections. Employing a large sample of nonfinancial firms listed on Pakistan Stock Exchange from 2009 to 2018, findings suggest that a corporate governance quality index and efficiency of working capital management are positively related to firm performance. Additionally, the results indicate that working capital management partially mediates the relationship between corporate governance and firm performance. These findings extend existing literature by offering new empirical and theoretical insights.
Corporate Governance, Working capital management, Firm performance, Emerging markets, Pakistan
Naz, Muhammad A.
41fcad1b-27ce-4838-acb1-b5d917fe900a
Ali, Rizwan
e9419873-e278-4105-a7fa-989f2647ce2f
Rehman, Ramiz ur
86dc877b-d0e0-487d-afb5-4eccfd56280a
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
20 November 2021
Naz, Muhammad A.
41fcad1b-27ce-4838-acb1-b5d917fe900a
Ali, Rizwan
e9419873-e278-4105-a7fa-989f2647ce2f
Rehman, Ramiz ur
86dc877b-d0e0-487d-afb5-4eccfd56280a
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Naz, Muhammad A., Ali, Rizwan, Rehman, Ramiz ur and Ntim, Collins
(2021)
Corporate governance, working capital management, and firm performance: some new insights from agency theory.
Managerial and Decision Economics.
(doi:10.1002/mde.3466).
Abstract
The role of corporate governance in performance of firms has been widely discussed in the extant literature. In contrast to examining direct relationships, this study investigates the mediating role of working capital management within these connections. Employing a large sample of nonfinancial firms listed on Pakistan Stock Exchange from 2009 to 2018, findings suggest that a corporate governance quality index and efficiency of working capital management are positively related to firm performance. Additionally, the results indicate that working capital management partially mediates the relationship between corporate governance and firm performance. These findings extend existing literature by offering new empirical and theoretical insights.
Text
Accepted_12_September_2021_Manuscript_MDE-21-0398
- Accepted Manuscript
More information
Accepted/In Press date: 12 September 2021
e-pub ahead of print date: 30 September 2021
Published date: 20 November 2021
Additional Information:
Publisher Copyright:
© 2021 John Wiley & Sons, Ltd.
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
Keywords:
Corporate Governance, Working capital management, Firm performance, Emerging markets, Pakistan
Identifiers
Local EPrints ID: 451130
URI: http://eprints.soton.ac.uk/id/eprint/451130
ISSN: 0143-6570
PURE UUID: 7bca764e-0d1a-4bde-aa68-eb12a3a7b41a
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Date deposited: 14 Sep 2021 10:37
Last modified: 06 Jun 2024 04:21
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Contributors
Author:
Muhammad A. Naz
Author:
Rizwan Ali
Author:
Ramiz ur Rehman
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