Research Report

Contents
Executive Summery.....................................................................................................................1
Formulate and record possible research project outline specifications.......................................2
Identify the factors that contribute to the process of Research project selection........................4
Undertake a critical review of key references for the Research project......................................5
Produce the research project specification..................................................................................7
Provide an appropriate plan and procedures for the agreed research specification...................11
Match resources efficiently to the research question or hypothesis..........................................11
Undertake the proposed research investigation in accordance with the agreed specification and
procedures..................................................................................................................................13
Select and use the appropriate research evaluation techniques.................................................13
Interpret and analyze the results in terms of the original research specification.......................14
Make recommendations and justify areas for further consideration.........................................16
Use an agreed format and appropriate media to present the outcomes of the research to an
audience.....................................................................................................................................16
References......................................................................................................................................17

Executive Summery
The goal to research the patterns in working capital management and the association of
managing working capital with the organization's performance and output generally
communicated by profitability is the principle goal of the study. The distinctions among various
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commercial enterprises are distinguished by exploring the productivity and working capital
patterns. A Return on Total assets is the intermediary to measure the association's execution and
its relationship with the variables representing to the Working Capital Management is examined
for a specimen of 54 firms for the period 2004-2010. The variables like invdays and ardays
demonstrate a significant effect on the association's earning ability. The study demonstrated a
direct and extensive relationship among the firm liquidity position with its performance.
Profitability of the firm and the firm' size have positive affiliation. The relationship in the midst
of debit proportion and the association's performance is inversely proportion yet this affiliation is
not this much significant? Additionally the outcomes shows insignificant connection exists
between the profitability of the firm and cash conversion cycle (CCC) and account payable in
days (ap days).
The results demonstrate that there is an important role of firms working capital management in
the performance of the firm. The organization can make worth for the company by using the
components of working capital in a productive way and along these lines build the proficiency
and performance of the firm.

Formulate and record possible research project outline specifications

Aim and Objective to the study
The aim of the study is to investigate the viability of working capital management with the
organization performance. As working capital management is the specialty of managing short
term assets and liabilities that is the means by which the management of the organization utilize
these benefits and liabilities to speed up the best yield.
Size of the firm influences the performance of the firm as well. The size and area of the firm
influence the adjustments in working capital in the positive way when the receivables and short
term liabilities are managed successfully (Sen and Oruc, 2009). Firm Cash conversion cycle
(CCC) is negatively connected with the extent of the firm. (Mongrut, 2008); this demonstrates
the bigger might have the capacity to lessen the money gap since they have more resources as
compared to the small firms.
Introduction

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In corporate finance, working capital management play a vital role. It is the specialty of dealing
with the firm current asset and liabilities to the maximum level. Net working capital is the
reduction of current liabilities from the current assets. It is essential it might be said that it
influences the liquidity of the firm on one side and the firm performance on the other. The
effective management of working capital prompts the productive performance and in this way
has high profitability. Firm will be unable to satisfy its short term liabilities in due time and this
will make issues for the organization and if not handle with due thought at last prompts
indebtedness and insolvency of the firm. For manufacturing organization current resource covers
half of the total assets utilized, while for different firms like distribution organizations it
commitment is considerably more than that of manufacturing organizations (Van Horne and
Wachowicz, 2000). Working capital ought to be managed in such a way, to the point that yields
most extreme profitability on one side with the liquidity of the firm ought not to be influenced on
the other side (Van Horne and Wachowicz, 2000).
Methodology
In order to find the financial performance of an organization, working capital plays an important
role. While making financial decisions in Pakistan, working capital management are considered
as important as long term financing and activities. The relationship between working capital
management and the corporate performance will be explored for the KSE-100 list organizations
recorded on the Karachi securities exchange for the time of 2004 to 2010.
Data & Sample
This study depend upon the financial data of the companies and this data can be easily collect
from the companies financial statements. The information required for the study is obtained
from the archive of KSE, thefinancialdaily site and additionally from the sites of the included
firm in the sample. Due to accessibility and availability of data, the study included only data
from 2004 to 2010. Only non-financial firms are included in this sample because 80 to 90
percent of the trading volume is due to these firms. There are different sectors included in the
study like Auto, Power, Construction, Oil & Gas etc. Due to difference in nature financial firms
like Banks, Insurance companies, leasing etc are excluded from the study. There are 54
companies included in the study.

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Identify the factors that contribute to the process of Research project

selection.
Organization need to settle on one of the greatest choices identified with the research project they
would tackle. There are numerous variables that should have been considered after the proposal
has been made. The objectives and goals of the organization should be remembered to pick the
most practical alternative.
Project choice is a procedure to assess every thought of the project and pick the most elevated
one. At this stage projects are just suggestions, subsequently its determination depends on project
brief portrayal.
Components add to Research Project Selection
Research process can't occur without a research issue which is considered as the main part of the
examination procedure. To pass on the issue, the variables must be critical and have the capacity
to be recognized effortlessly and an every examination issue must have a hypothesis. Research
hypothesis is resolved through interpreting an obviously characterized research issue. Hypothesis
must express the relationship between two or more variables into one or more populations.
Research problem will be investigated first. researcher explore the significance of exploration
issue, sources of research problem, thought and ventures to take after when research issue is
being defined. The variable distinguishing proof will be talked about second through the three
normal variables and four evident estimation scales.
There are several factors which the effect the process of the research. Some of them are follows
1.
2.
3.
4.

People
Program
Phenomena
Problems

Research problem include the following steps

1. There are three types of variables: dependent, independent, extraneous.
Each one can have more than one value.
2. Different types of scales are used for the classification of variables. Like
interval scale, nominal scale, ordinal scale, ratio scale.

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3. By hypothesis it means that uncertain statement are included to find the
relationship between the variables. Two types of hypothesis are used. Null
hypothesis and alternate hypothesis.

Undertake a critical review of key references for the Research project.

As the organizations in KSE-100 index comprise of various sectors of the economy and having
diverse capital structure. The prerequisite of capital relies upon on the way of firm business.
Working capital involves current assets and current liabilities which have a generous record in
the general capital structure. The firm caters this capital prerequisite by various mix of equity
and debt as per their inclination of business. The well-organized working capital means the
management employed the distinctive elements of it in a manner that upgraded the proficiency of
the firm (Deloof, 2003). Better effectiveness demonstrates that the level of yield is accomplished
with the less factors employed.

Working capital is by all account not the only component that influences the performance of the
firm. The controlling variables incorporated into the study are a portion of the variables that
influence the company's performance like size of the firm, the debt position, assets turnover and
the bit of current liabilities in the total assets employed. These variables additionally influence
the working capital choice of the firm.
Size of the firm influences the performance of the firm as well. The size and area of the firm
influence the adjustments in working capital in the positive way when the receivables and short
term liabilities are managed successfully (Sen and Oruc, 2009). The expense of financing has a
converse effect of the CCC of the firm with bigger influence, more potential industry Sonia et al.
(2010). The subject of Working Capital has been concentrated on by numerous researchers with
various perspective and in differing circumstances. A portion of the research about which are
valuable for this study are given underneath.
The investigation of Eljelly (2004) explained the relationship between the company's
profitability and liquidity. Utilizing current proportion to ascertain the affiliation, it is clear that
the connection is opposite and significant. This study was led on business entities recorded in
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Saudi Arabia. The study explained the relationship among liquidity and profitability. The
organizations with long cash gap and high current proportion have more obvious relationship.
The study also demonstrates that cash gap strongly affects the relationship than the liquidity i.e.
current proportion. Profitability of the firm and also industry is impacted up to some degree by
the company's size in economic sector. The impact of liquidity and size changes in various parts
and more significant in capital concentrated industry. The research also demonstrates the
outcomes of holding over the excessive liquidity fit as a fiddle of losing benefit and other
superfluous expense brought about by the organizations.
In his study Deloof (2003) proposed that the vast majority of the firm has contributed substantial
measure of money to satisfy its need of working capital. In the event that this working capital is
directed effectively, it will acquire a significant influence the profitability of the firm. The study
led on the Belgium firms reason that if the management may ready to diminish the quantity of
days deals extraordinary and inventories to a base, this will prompts the better execution and
accordingly shareholder wealth gains. The relationship between account payable and profitability
demonstrates that keeping in mind the end goal to pay their due sums, less profitable firms hold
up longer. By using analysis of regression and correlation the study find out that liberal measure
of short term payable is utilized as a financing source. The opposite relationship between the
stock and benefit is the outcomes of offers decrease.in this way the sales of the firm decreases
and the inventory of the firm increases.
Conclusion
As clear from the pattern of various proportions identifying with the proficiency of the firm in
dealing with its working capital, in the study time frame the organizations put intensely in
working capital. It is normal that if the investment is managed in a proficient way, the
performance of the firm will improve. The study discovered independently that variable speaking
to the time required to change over the stock into sales i.e. invdays has a positive, while the
Accounts Receivables in days ardays has a inverse association with rota. Both these affiliation is
critical. The individual relationship of apdays with rota is positive but not important. So also cash
conversion cycle and rota have the inverse rota however it is insignificant. These study results
delineate that keeping in mind the end goal to increment/make value for their shareholders; the
firm may utilize such approaches to decrease invdays , ardays or to stretch its time of installment
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i.e. apdays to the ideal level. Along these lines they might have the capacity to diminish cash
conversion cycle to the conceivable least level to upgrade its worth.

Produce the research project specification

Objective
The aim of the study is to investigate the viability of working capital management with the
organization performance. As working capital management is the specialty of managing short
term assets and liabilities that is the means by which the management of the organization utilize
these benefits and liabilities to speed up the best yield.
Literature Review
The study directed by Lazaridis and Tryfonidis (2005) to examine the connection between the
company's performance in term of profitability and Working Capital Management. The study led
on listed organizations of the Athens stock trade (ASE). The study utilized gross working profit
as intermediary of performance. The outcomes show a significant relationship between the
profitability and the cash gap. The inverse correlation between the receivables inflow and
profitability show that organizations with less profit ought to embrace a technique to get their
exceptional all the more rapidly keeping in mind the end goal to abbreviate the cash gap. The
indirect relation between records receivables and firms' productivity prescribe that less profitable
firms will seek after a decline of their records receivables trying to reduce their cash gap out the
cash conversion cycle.
Size of the firm influences the performance of the firm as well. The size and area of the firm
influence the adjustments in working capital in the positive way when the receivables and short
term liabilities are managed successfully (Sen and Oruc, 2009). The expense of financing has a
converse effect of the CCC of the firm with bigger influence, more potential industry Sonia et al.
(2010). The subject of Working Capital has been concentrated on by numerous researchers with
various perspective and in differing circumstances. A portion of the research about which are
valuable for this study are given underneath.
The investigation of Eljelly (2004) explained the relationship between the company's
profitability and liquidity. Utilizing current proportion to ascertain the affiliation, it is clear that
the connection is opposite and significant. This study was led on business entities recorded in
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Saudi Arabia. The study explained the relationship among liquidity and profitability. The
organizations with long cash gap and high current proportion have more obvious relationship.
The study also demonstrates that cash gap strongly affects the relationship than the liquidity i.e.
current proportion. Profitability of the firm and also industry is impacted up to some degree by
the company's size in economic sector. The impact of liquidity and size changes in various parts
and more significant in capital concentrated industry. The research also demonstrates the
outcomes of holding over the excessive liquidity fit as a fiddle of losing benefit and other
superfluous expense brought about by the organizations.
The investigation of Katerina and Lazaridis (2000) find out that the food industry in Greece
keeping in mind the end goal to research the money conversion cycle (CCC) as a liquidity
intermediary and its connection with other liquidity ratios like current ratio, acid test proportion,
profit and leverages. It tried the effect of the change in sales acquire change the working capital
indicators. Likewise the managerial decisions acquire eccentric change the productivity and
liquidity ratio in regards to change in working capital. The study contrasts from other study it
might be said that the study demonstrates direct and significant relationship of Cash conversion
cycle with the liquidity proportions like (cr and qar), to the account receivables and inventory
turnover period. The cash conversion cycle has direct and positive affiliation just with ROI and
net profit margin (NPM). The liquidity proportion i.e. cr and qar has indirect relationship with
leverage proportion (debt to equity) while a positive (direct) relation with interest covering ratio.
The outcomes demonstrate the relationship between Cash conversion cycle and influence is not
straight. Correspondingly the liquidity does not rely on upon the firm size.
The study led by Padachi (2006) explicated the association of company's affiliation and working
capital management. The study was directed on the small and medium enterprise of Mauritius.
The study investigated the negative relationship between the company's profitability and high
financing in stock and receivables. The study directed on various segments of the SME and
demonstrates the conduct of various variables of working capital and how the firm performance
is influenced by these components. The outcomes demonstrate an increase in short term trend in
various segments of working capital. Paper and printing division is alluded as "hidden
Champions" and demonstrate that how it finish high picks up on the diverse constituents of
working capital and how the profitability of the firm positively affected by these components.
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Hypothesis
H01: Profitability is related to the efficient working capital management.
H04: Profitability of the firm depends on size of the firm.

Methodology
In order to find the financial performance of an organization, working capital plays an important
role. While making financial decisions in Pakistan, working capital management are considered
as important as long term financing and activities. The relationship between working capital
management and the corporate performance will be explored for the KSE-100 list organizations
recorded on the Karachi securities exchange for the time of 2004 to 2010.
Data & Sample
This study depend upon the financial data of the companies and this data can be easily collect
from the companies financial statements. The information required for the study is obtained
from the archive of KSE, thefinancialdaily site and additionally from the sites of the included
firm in the sample. Due to accessibility and availability of data, the study included only data
from 2004 to 2010. Only non-financial firms are included in this sample because 80 to 90
percent of the trading volume is due to these firms. There are different sectors included in the
study like Auto, Power, Construction, and Oil & Gas etc. Due to difference in nature financial
firms like Banks, Insurance companies, leasing etc. are excluded from the study. There are 54
companies included in the study.
Explanatory Variables
There are variables which best explain the working capital management and firms performance.
These variables are known as explanatory variables. (Deloof, 2003).

i.

Accounts Receivables in Days (ardays)

This variable shows the collection strategy of the organization and obtained by finding the
account receivables ratio & sales & than multiplying the result with 365 days.
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ii.

Inventory Turnover in Days (ivndays)

This variable explain the raw materials into sales and is the ratio of stocks multiplied by 365 and
at the end divide the cost of sales.
iii.

Average Payable in Days (apdays)

It is the ratio of account payable and then multiplying this with 365 days and divide the result by
the cost of sale.
iv.

Cash Conversion Cycle (CCC)

This variables can be define as ardays + ivndays apdays.

Controlling variables
Those variables which explain the liquidity, leverage and performance of the firms are knkown
as controlling variables. Following are the controlling variables
I.
II.
III.

Assets Turnover (Turna)

Current Liability to total assets (clta)
Size (insales)

Analysis
Different investigation are used in the study. Following are the details

Correlational investigation
Regression investigation
Pooled least square estimation
Weighted least square model

Conclusion
As clear from the pattern of various proportions identifying with the proficiency of the firm in
dealing with its working capital, in the study time frame the organizations put intensely in
working capital. It is normal that if the investment is managed in a proficient way, the
performance of the firm will improve. The study discovered independently that variable speaking
to the time required to change over the stock into sales i.e. invdays has a positive, while the
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Accounts Receivables in days ardays has a inverse association with rota. Both these affiliation is
critical. The individual relationship of apdays with rota is positive but not important. So also cash
conversion cycle and rota have the inverse rota however it is insignificant. These study results
delineate that keeping in mind the end goal to increment/make value for their shareholders; the
firm may utilize such approaches to decrease invdays , ardays or to stretch its time of installment
i.e. apdays to the ideal level. Along these lines they might have the capacity to diminish cash
conversion cycle to the conceivable least level to upgrade its worth.

Provide an appropriate plan and procedures for the agreed research

specification
Task
Planning
Collection

Start Date
16/6/16
of 17/6/16

Duration
1
3

End Date
16/6/16
20/6/16

data
Data Entry
Data Analysis
Report writing
Distribute Draft

21/6/16
27/6/16
03/7/16
14/7/16

5
5
10
1

26/6/16
02/7/16
13/07/16
14/7/16

Report
Solicit

15/7/16

17/7/16

comments
Finalize report
18/9/14
Distribute
to 21/7/16

2
1

20/7/16
21/7/16

Board

Match resources efficiently to the research question or hypothesis

The study led by Ghosh and Maji (2003) made a try to investigate the viability of working
capital management including cement industry of India as a sample. Next to the typical pointers
of Working Capital Management, the research additionally incorporate the general proficiency
records and setting the business standard as performance usage criteria for the individual firm.
The results of the study investigate that this part does not perform remarkably well amid this
period.
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Smith et al. (1997) clarified the study on the enrolled organizations in Johannesburg Stock
Exchange (JSE). The question to be explored in the study is whether the new ideas of managing
working capital i.e. far reaching liquidity index have enhanced relationship among the
performance of the organization when contrasted with the conventional markers like current and
quick proportion. Utilizing step-wise relapse, the results of the study does not demonstrate a
major distinction between the two methodologies. The proportion of aggregate current liability
and funds flow is for the most part in charge of the irregularity in ROI and had demonstrated an
extensive association with Return on Investment. The traditional liquidity proportions like
current proportion and acid test ratio show insignificant relationship with the reliant variable,
though the main new idea of working capital i.e. the complete liquidity index, demonstrate
measurably extensive connection with Return on Investment.
The study directed by Ganesan (2007) demonstrated that the organizations working in an
industry with less competition focus incredibly on cash slack through diminishing credit inflow.
Likewise the firm working in aggressive industry as a rule has high level of credit inflow.
Demirgunes and Samiloglu (2008) demonstrates that account receivables and inventory period
negatively influences productivity in Turkish manufacturing firm, which suggest that
performance can be improved by shortening the inflow from receivables and in addition stock
change period.
The cash gap is a profitable method for assessing the company's income since it measures the
time between the account received by the firm and account payment to the suppliers and the
transformation of these materials into refined or completed items. It is more influential and more
finish measure of liquidity as contrast with the traditional liquidity indicators like the current
proportion and the acid test proportion which focus on static balance sheet values. The cash gap
then again incorporates the time aspect of liquidity which measures the general cash
management capacity of firms Moss and Stine (1993).

Undertake the proposed research investigation in accordance with the

agreed specification and procedures.
Methodology
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Research Report
In order to find the financial performance of an organization, working capital plays an important
role. While making financial decisions in Pakistan, working capital management are considered
as important as long term financing and activities. The relationship between working capital
management and the corporate performance will be explored for the KSE-100 list organizations
recorded on the Karachi securities exchange for the time of 2004 to 2010.
Data & Sample
This study depend upon the financial data of the companies and this data can be easily collect
from the companies financial statements. The information required for the study is obtained
from the archive of KSE, thefinancialdaily site and additionally from the sites of the included
firm in the sample. Due to accessibility and availability of data, the study included only data
from 2004 to 2010. Only non-financial firms are included in this sample because 80 to 90
percent of the trading volume is due to these firms. There are different sectors included in the
study like Auto, Power, Construction, and Oil & Gas etc. Due to difference in nature financial
firms like Banks, Insurance companies, leasing etc. are excluded from the study. There are 54
companies included in the study.

Select and use the appropriate research evaluation techniques

Theoretical Framework
The effective firms built up its standards in such an approach to build its profitability up to the
ideal level with the accessible resources. Working capital assumes a considerable part in the
effectiveness of the firm. Working capital management is the craft of utilizing its present
resources and liabilities in a manner that on one side it augment the firm benefit and on the other
side it doesn't influence the credit value of the firm Brigham and Houstan (2003). cash
conversion cycle is utilized as an intermediary for working capital administration is the time
slack between the outflows of the firm for the securing for the creation and the inflow from the
offer of the completed merchandise to the customers. On the off chance that the firm ready to
decreased this hole to the degree which did not influences the other element. At the point when
the recurrence of change of crude products into deals builds it shows that the performance or
productivity of the firm likewise improved.
Model

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As the study incorporate the mix of longitudinal and in addition cross-sectional information, so
pooled relapse is utilized as a study model. As the quantity of cross segments is more prominent
than the time arrangement, so the issue of hetroskedasticity may emerges. Keeping in mind the
end goal to experience this issue the hetroskedasticity and autocorrelation, Hetroskedasticity and
Autocorrelation Corrected (HAC) pooled OLS display and weighted minimum square model are
utilized for the study. The coefficients of variables are ascertained with p esteem demonstrating
the level of importance. R squared is utilized to demonstrate that how the model utilized as a part
of the concentrate better clarified by the included variables. The normal structure of the model is:

Descriptive
Parameters
Mean
Median
Standard
Deviation
Kurtosis
Skewness

rota
0.12
6
0.09
7
0.13
9
4.77
3
1.42
9

turna clta
1.025
0.773
0.901
7.461
2.318

0.32
9
0.30
3
0.20
9
2.74
2
1.16
9

invdays ardays apdays

-60.422

54.488

-159.187

-31.721

31.431

-71.7006

99.7797

72.513

466.263
3

34.9285

14.107

48.0303

-5.0084

3.1804

-6.6627

ccc
153.03
2
57.440
8
480.95
8
51.610
5
6.7449

lnsales
15.919
15.746
1.9236
25.425
-3.1257

Y it = 0 + it X it + t
it

Interpret and analyze the results in terms of the original research

specification

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The above table speaks to the illustrative examination of the considerable number of firms in
KSE-100 record. The table contains the mean, standard deviation, median, kurtosis and skewness
of 54 recorded organizations for the span of seven years extending from 2004 to 2015. The
average estimation of ROTA is 12.59% with 13.89% as an estimation of standard deviation. As
the median estimation of 9.68% is lesser than the normal quality, demonstrates that the
information is not typical but rather emphatically skewed as clear by the skewness estimation of
1.4295. The estimation of kurtosis (4.773) demonstrates that the appropriation of ROTA is leptokurtic i.e. there is less variability in its appropriation.
To examine the impact of the firm size on the reliant variable lnsales is utilized as an
intermediary to represent size of the firm. The result of this variable demonstrates the mean for
the examined firms are 15.92 with a variety of 1.923. The skewness estimation of - 3.1257
demonstrates that the appropriation of lnsales is negative i.e. the dominant part of firms have
little size. To discover the variability in the appropriation, the kurtosis estimation of 25.43
demonstrates that the information has no more effective variability for this variable. This implies
the vast majority of the perceptions lie close to the mean value.
To affirm the effectiveness in dealing with the working capital of the firm, cash conversion cycle
(CCC) gap is utilized as a substitute. The aftereffects of CCC show normal estimation of 153
days with a variety of 481 days, while the skewness and kurtosis has the estimation of 6.7449
and 51.61 separately. The above results demonstrate that the appropriation of ccc is decidedly
skewed and the majority of the perceptions lie close to the normal range as clear from the
kurtosis value. The aftereffects of apdays show estimation of 159 days and 466 days for the mean
and standard deviation separately for the entire sample. Essentially the kurtosis and skewness
value for this variable is 48.03 and - 6.6627 individually and demonstrate that the information is
lepto-kurtic and contrarily skewed. This demonstrates the greater part of the perceptions have
less value than the mean value. The outcomes demonstrate that the organizations postpone their
installment of bills for around 159 days by and large to their suppliers for raw materials.
similarly the average and standard deviation value of invdays for all the samples firms are 60 and
100 days separately, which implies that these organizations take 60 days by and large to change
over the raw material into deals. The kurtosis value of 34.9285 demonstrates that the greater part

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of the perception lies close to the normal value. Thus the skewness value of - 5.0084 show that
the information for this variable is adversely skewed.
Firms gather money from their deal inside a normal of 54 days with the variety of 73 days. The
outcomes show that information for this variable has a positive skewness and leptokurtic pattern
as obvious by estimations of 3.1804 and 14.10 for skewness and kurtosis separately.

Make recommendations and justify areas for further consideration

As 30th June 2009 is taken as the reference date, so sample size contains the organizations on the
mention date. The study recommend that study might be further led on breaking down the KSE100 and incorporate every one of those organizations which represent and show to Karachi Stock
market sector amid the whole time of the study. The sample size selected for the study will
increase as an aftereffect of this activity and speak to the KSE-100 record in its unique sense.
Similarly the study may likewise be augmented to cover different constituents of working capital
management like cash and marketable securities.

Use an agreed format and appropriate media to present the outcomes

of the research to an audience
As clear from the pattern of various proportions identifying with the proficiency of the firm in
dealing with its working capital, in the study time frame the organizations put intensely in
working capital. It is normal that if the investment is managed in a proficient way, the
performance of the firm will improve. The study discovered independently that variable speaking
to the time required to change over the stock into sales i.e. invdays has a positive, while the
Accounts Receivables in days ardays has a inverse association with rota. Both these affiliation is
critical. The individual relationship of apdays with rota is positive but not important. So also cash
conversion cycle and rota have the inverse rota however it is insignificant. These study results
delineate that keeping in mind the end goal to increment/make value for their shareholders; the
firm may utilize such approaches to decrease invdays , ardays or to stretch its time of installment
i.e. apdays to the ideal level. Along these lines they might have the capacity to diminish cash
conversion cycle to the conceivable least level to upgrade its worth.
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References
Afza, T., & Nazir, M. (2007). "Is it Better to be Aggressive or Conservative in Managing
working Capital? Singapore Economic Review Conference (SERC), (pp. 1-15). Singapore.
Appuhami, B. (2008). "The Impact of Firm's Capital Expenditure on Working Capital
Management: An Empirical Study across Industries in thailand". International Management
Review, 8-21.
Besley, S., & Meyer, R. (1987). "An Empirical Investigation of Factors Affecting the Cash
Conversion Cycle". Business and Economics Society International.
Brigham, E., & Houstan, J. (2003). Fundamentals of Financial Management (10th ed.). SouthWestern College Pub.
Deloof. (2003). "Does Working Capital Management Affect Profitability of Belgium Firms".
Jontingurnal of Business Finance & Accounting, 585.
Deloof, M., & Jegers, M. (1996). "Trade Credit, Product Quality and Intra Group Trade: Some
European Evidence". Financial Management, 25 (3), 33-43.
Demirgunes, K., & Samiloglu, F. (2008). "The Effect of Working Capital Management on Firm
Profitability:Evidence from Turkey". The International Journal of Applied Economics and
Finance, 2 (1), 44-50.
Dong, H., & Jyh-tay, S. (2010). "The Relationship between Working Capital Management and
Profitability: A Vietnam Case. International Research Journal of Finance and Economics.
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