Efficient working capital management boosts firm performance in emerging markets.
Efficient management of working capital in companies in Bangladesh can positively impact their market value and profitability. By analyzing data from firms in the Dhaka Stock Exchange, researchers found that factors like cash conversion cycle, current ratio, and debt to asset ratio can influence a company's value and return on assets. The study showed a significant link between working capital management and firm value and return on assets in the food and manufacturing sectors, but not with return on invested capital.