Underlying Relationship between Working Capital Management and Profitability of Pharmaceutical Companies in India
American Journal of Theoretical and Applied Business
Volume 1, Issue 1, June 2015, Pages: 27-36
Received: Jun. 4, 2015; Accepted: Jun. 12, 2015; Published: Jun. 15, 2015
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Authors
Amalenu Bhunia, Department of Commerce, University of Kalyani, West Bengal, India
Amit Das, Department of Commerce, University of Kalyani, West Bengal, India
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Abstract
Purpose of the study: This research work investigates the underlying relationship between working capital management and profitability of pharmaceutical companies in India. Background of the study: Effective working capital management perks up firms’ profitability and liquidity position, and as a result growing the firm’s market value. Methodology: This study is based on secondary data obtained from centre for monitoring Indian economy database for the period from 2003 to 2013. In the course of examination, descriptive statistics, correlation statistics and multiple regression test have been used. Results: Multiple regression tests corroborate a lower degree of relationship between the working capital management and profitability under study. Findings of the study: The company manger would anxiety on working capital management performance, mainly unexplained variables in justification of making shareholder wealth.
Keywords
Working Capital Management, Liquidity, Profitability, Pharmaceutical Company, India, Multiple Regression Test
To cite this article
Amalenu Bhunia, Amit Das, Underlying Relationship between Working Capital Management and Profitability of Pharmaceutical Companies in India, American Journal of Theoretical and Applied Business. Vol. 1, No. 1, 2015, pp. 27-36. doi: 10.11648/j.ajtab.20150101.15
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