Optimizing Working Capital Policies Boosts Firm Profitability and Value
The study looked at how the way companies manage their money affects how well they do. They studied 120 companies in Pakistan from 2009 to 2014. They found that how companies invest, borrow money, their size, how fast they grow, and how much debt they have all impact how much money they make and how valuable they are. Overall, companies that make smart investments, borrow wisely, and grow quickly tend to be more profitable and valuable.