Title: Does corporate governance influence the working capital management of firms: evidence from India

Authors: Punam Prasad; Narayanasamy Sivasankaran; Palanisamy Saravanan; Manoharan Kannadhasan

Addresses: Indian Institute of Management Ranchi, Suchana Bhawan, Meur's Road, Ranchi – 834 008, India ' Indian Institute of Management Ranchi, Suchana Bhawan, Meur's Road, Ranchi – 834 008, India ' Indian Institute of Management Tiruchirappalli, Pudukkottai Main Road, Tiruchirappalli 620 024, India ' Indian Institute of Management Raipur, Sejbahar, Raipur 492 015, India

Abstract: The study explores the impact of corporate governance on the working capital management of Indian firms. The investigation has been performed using balanced panel data procedures for a sample of 323 Indian non-financial firms listed in the Bombay Stock Exchange for the period 2007-2017. Findings of our study indicate that the CEO duality, one of the nine board indicators play a role in improving the working capital management of the sample firms. The default tax payment of the legal indicator and the additional information disclosure of the proactive indicators also have an effect on the working capital management of the Indian non-financial firms. This study is unique as it reveals the impact of corporate governance on the working capital management of Indian non-financial firms.

Keywords: corporate governance; working capital management; WCM; random effect method; Indian non-financial firms.

DOI: 10.1504/IJCG.2019.098039

International Journal of Corporate Governance, 2019 Vol.10 No.1, pp.42 - 80

Received: 22 Jan 2018
Accepted: 12 Jul 2018
Published online: 27 Feb 2019 *

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