This study examines the existence of expiration-day effects of index derivatives trading in India through volume, return, volatility, and price reversal characteristics of underlying stock market during expiration days of these contracts. Expiration-day effects can be a result of a mixture of factors, including the presence of arbitrage opportunities, the cash settlement nature of index derivative contracts, the stock market process for accommodating the unwinding of arbitrage positions in the stocks, and the efforts to wittingly manipulate prices. Using daily price and turnover data of CNX Nifty and employing time series “ARMA model with EGARCH errors,” the results of the study indicated the presence of some significant but non-disastrous expiration-day effects in India.

The smooth running of business operations demands an efficient management of working capital by properly managing the inventory, accounts receivables and accounts payables of the business. This helps companies not only fulfil their short-term financial commitments but also boost their earnings. Therefore, the present study aims at verifying the impact of working capital management on the profitability of the companies under pharmaceutical industry in India. For empirical analysis, the data of 618 pharmaceutical companies is taken over a period of seven years from 2014–2015 to 2020–2021 and multivariate panel data regression technique is applied on data for estimating the results. The findings of the study validate that the profitability of companies is significantly influenced by working capital management. These findings will provide an insight to corporate managers and owners of pharmaceutical companies in deciding appropriate working capital strategy.

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