Abstract
Corporate governance and working capital management are considered as critical areas of finance. The objective of this research
work is to analyze the interrelationship among corporate governance, working capital management, and performance of firms.
Financial data of 140 non-financial firms listed in Pakistan Stock Exchange from 2008 to 2015 constitute the sample for this study.
Pooled Ordinary Least Square estimation method is used to estimate the formulated relationships. After examining the direct
impact of corporate governance on the performance of the firm, this study revealed that ownership concentration and board size
positively affect firm performance, whereas CEO duality has a negative effect on firm performance. The second relationship
examined the impact of working capital management on the performance of the firm. This study found a significant negative
impact of the cash conversion cycle and positive impact of current ratio on firm performance respectively. The third relationship
studied the impact of corporate governance on working capital management. This study found that board size has positive impact,
whereas ownership concentration negatively affects the cash conversion cycle. This study also revealed that board size and
ownership concentration both affect the current ratio positively.
Muhammad Abbas, Muhammad Azhar Aslam, Khawar Naheed, Muhammad Aamir. (2019) Interrelationship among Corporate Governance, Working Capital Management, and Firm Performance: Panel Study from Pakistan , Paradigms , Vol 13, Issue 1.
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