Impact of corporate governance on working capital management: an empirical investigation from India

The current study examined the effects of corporate governance on the effectiveness of working capital management among Indian pharmaceutical companies. The study extracted data for ten years from 2008 to 2017 and the empirical analysis conducted was based on a large sample of 82 companies. The results of the current study revealed the number of directors on a board of directors negatively and significantly affects payables deferral period and receivables collection period, while composition of the board does not have a significant impact on the efficiency of working capital management. The current research is believed to be among the first to investigate the influence of corporate governance on the effectiveness of working capital management in an emerging economy, India. The study data should be beneficial for policymakers, investors, finance managers, and others concerned with the efficiency of working capital management.