The literature on the Impact of Working Capital Policy on Profitability: A Comparative Analysis
Sarika Pansare* (Assistant Professor, Dr. D. Y. Patil B-School, Pune, Maharashtra, India),Shraddha Joshi (Assistant Professor, Dr. D. Y. Patil B-School, Pune, Maharashtra, India) and Shilpi Kumari (Student, Dr. D. Y. Patil B-School, Pune, Maharashtra, India), *Corresponding author's Email
Pansare, Sarika; Joshi, Shraddha and Kumari, Shilpi (2019), “The literature on the Impact of Working Capital Policy on Profitability: A Comparative Analysis”, MERC Global’s International Journal of Management, Vol. 7, Special Issue 2, pp. 07-10.
Submitted: April 01, 2019, Revision received: April 16, 2019, Accepted: April 30, 2019
Adoption of the optimum working capital policy by firms has always been recommended by researcher’s world over. However, what is the right working capital policy? The choice between an aggressive, moderate, and liberal working capital policy has not been straightforward. A mixed opinion is seen when we review literature in this regard. This paper carries a structured literature review looking at the 30 recent studies' recommendations on the right policy of working capital. The results have been analysed collectively, and overall findings are presented.
Working capital, Working capital policy, Structured literature review.
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