The determinants of working capital management in Pakistan

The case of manufactoring sector


  • Ammara Sarwar The University of Lahore, Sargodha Campus


Working capital management,, manufacturing industry,, Pakistan,


This study aims at exploring the determinants of working capital management in manufacturing sector listed at Pakistan Stock Exchange (PSE). It has considered all the components of working capital management i.e, cash conversion cycle, average collection period, average payment period and inventory turnover in days. The analysis has been done by utilizing data of 127 Pakistan stock exchange listed firms from four largest industries in Pakistan i.e., textile, sugar, chemical and cement for the period between 2008 and 2013. Hausman results demonstrate that Liquidity, Leverage and Sales growth, Firm age, Operating cash flow are significant determinants of working capital management. In addition, the macroeconomic conditions like GDP and financial crisis also affect the components of working capital management.


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How to Cite

Sarwar, A. (2020). The determinants of working capital management in Pakistan: The case of manufactoring sector . Competitive Social Science Research Journal, 1(2), 31–53. Retrieved from