Impact of Working Capital Management on Corporate Wellbeing- a Review of Selected Studies

Abstract

The study outlines the changes and significance of Working Capital Management (WCM) practices to different firms and industries, operating in the most competitive global business scenario, over a considerable period of time. The study discusses about corporate practices in managing individual components of current assets, identifying the sources of working capital and controlling the cost of managing inventory, receivables and payables with the basic motto to have a trade-off between the liquidity-risk-profitability aspects of every organization, which ultimately aids to the share holder's net worth.