The impact of corporate governance on working capital management efficiency of American manufacturing firms

Amarjit S. Gill, Nahum Biger

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose – The purpose of this study is to investigate the impact of corporate governance on working capital management efficiency. This study also seeks to extend the findings of Gill and Shah. Design/methodology/approach – This study applied a co-relational research design. A sample was selected of 180 American manufacturing firms listed on the New York Stock Exchange (NYSE) for a period of 3 years (from 2009-2011). Findings – The findings of this study indicate that corporate governance plays some role in improving the efficiency of working capital management. Research limitations/implications – This is a co-relational study that investigated the association between corporate governance and working capital management efficiency. There is not necessarily a causal relationship between the two, although the paper provides some conjectures to the findings. The findings of this study may only be generalized to firms similar to those that were included in this research. Originality/value – This study contributes to the literature on the factors that improve the efficiency of working capital management, and in particular on the association between several features of corporate governance and the efficiency of working capital management. The findings may be useful for financial managers, investors, financial management consultants, and other stakeholders.

Original languageEnglish
Pages (from-to)116-132
Number of pages17
JournalManagerial Finance
Volume39
Issue number2
DOIs
StatePublished - 11 Jan 2013
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2013, © Emerald Group Publishing Limited.

Keywords

  • Audit committee
  • Board size
  • CEO duality
  • CEO tenure
  • Corporate governance
  • Manufacturing industries
  • United States of America
  • Working capital management

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Finance

Fingerprint

Dive into the research topics of 'The impact of corporate governance on working capital management efficiency of American manufacturing firms'. Together they form a unique fingerprint.

Cite this