Working Capital Management Policies in Indian Listed Firms: A State-Wise Analysis

The main aim of this paper is to evaluate the impact working capital policies on firms’ profitability. study uses a panel data set 829 manufacturing firms for period from 2011 2017. Data extracted Prowess IQ database. An empirical model used testing research hypotheses. results show that all across Indian states follow conservative financing and investment policy. policy positively affects return assets, whereas negatively assets therefore financial sustainability. Regulators, policymakers, investors, managers in companies are advised policy, which effective efficient boosting profitability attaining Therefore, should invest more current because they need expand both inventories trade credit their customers. Moreover, favor low level debt assets. Apart previous literature, was either descriptive or based small sample size, present makes novel significant contribution by bridging an existing gap through applying fixed- random-effect large sample: firms. Furthermore, business environment India somewhat different other countries around globe, investigating contexts interesting endeavor.