Corporate Governance Practices and its Impact on Efficiency of Working Capital Management (A Case Study of Pakistan)

Abstract

Purpose: Recent Financial crunch exposed, creative reporting and fake facts such as Enron and WorldCom enlightened Act (2002) towards positive rationalism efficacy of governance and financial management for any public listed enterprise around the globe. The intention of this investigates highlight the influence of governance control on the management of operational capital.
 Methodology: A sample was carefully chosen of 116 Pakistan manufacturing establishment from annual reports listed over (PSE) for a period of 11 years (from 2009-2020). Panel methods were employed to evaluate the variant in Regressand due to predictors.
 Findings: The result reveals enormous negative influence of governing body on the working capital efficacy. However, investigation came up with the understanding that governance might play very substantial starring role in taming the effectiveness of liquidity.
 Values: The disclosures are beneficial for financial executives, financiers, financial consultants, and other stakeholders.

Exploring the Corporate Governance and Financial Performance: Nexus Through Green Investment in the Automobile Sector of Pakistan

“…Multiple studies have examined as a moderating and mediating variable in the link between CG and FP influence of working capital management (Shahid et al, 2020;Nawaz et al, 2021;Khan et al, 2021;Kamran et al, 2022). CSR used in few studies as a mediating variable (Tiep Le & Nguyen, 2022) and moderating role (Saleh et al, 2021 andMubeen et al, 2021), board size, board characteristics financial slack, intellectual capital and cost of debt and capital as mediator Javaid et al, 2021;Raudhatul & Sa'adah, 2022;Shahid et al, 2020;Tabassam and Khan, 2021) corporate diversification (Tanui et al, 2021), market orientation (Karim et al, 2020), firm size and board independence used as a moderating variable (Mubeen et al, 2021) but still a study is lacking pertinent to find out the impact of CG on FP with mediating role of GI suggested by (Shahid et al, 2020) to fill the gap of this study.…”