Effect of working capital policies on firms’ financial performance

This study focuses on short-term investment and financing decisions influenced by a firm’s working capital policy the effect of policies financial performance manufacturing firms in Malaysia. Working were measured policies. was ratio current assets to total assets. categorized as conservative policy, aggressive matching policy. considered which not previous empirical studies. The data included 147 with 1470 firm-year observations for period from 2010 2019. results revealed that asset significantly negatively affected firms’ performance. Meanwhile, positively related finding implies Malaysian can increase their operating income adopting an also implementing rather than or