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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
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 non-financial firms listed on Pakistan Stock Exchange from 2009-2018, 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.

Keywords: Corporate Governance; Working capital management; Firm performance; Emerging markets; Pakistan
Corporate Governance, Working capital management, Firm performance, Emerging markets, Pakistan
0143-6570
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.
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). (In Press)

Record type: Article

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 non-financial firms listed on Pakistan Stock Exchange from 2009-2018, 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.

Keywords: Corporate Governance; Working capital management; Firm performance; Emerging markets; Pakistan

Text
Accepted_12_September_2021_Manuscript_MDE-21-0398 - Accepted Manuscript
Restricted to Repository staff only until 12 September 2023.
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More information

Accepted/In Press date: 12 September 2021
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
ORCID for Collins Ntim: ORCID iD orcid.org/0000-0002-1042-4056

Catalogue record

Date deposited: 14 Sep 2021 10:37
Last modified: 16 Sep 2021 01:27

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Contributors

Author: Muhammad A. Naz
Author: Rizwan Ali
Author: Ramiz ur Rehman
Author: Collins Ntim ORCID iD

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