Please use this identifier to cite or link to this item: https://ir.iimcal.ac.in:8443/jspui/handle/123456789/959
Title: Review of literature on Working Capital Management and Future Research Agenda
Authors: Prasad, Punam
Narayanasamy, Sivasankaran
Paul, Samit
Chattopadhyay, Subir
Saravanan, Palanisamy
Keywords: Capital expenditure
Pro?tability
Research agenda
Trade-off theory
Working capital management
Issue Date: 2018
Publisher: AR-IIMC
Journal of Economic Surveys
Series/Report no.: 33(3)
Abstract: The purpose of this study is to take a stock of what has been studied on working capital management (WCM) so far and ascertain the factors which are more likely to be impacted by poor WCM. Moreover, it aims to spell out the areas for further research on WCM so that the body of knowledge can be expanded. A systematic literature review of the research works on WCM has been performed using Google Scholar. Articles with citations of 50 and above as of June 05, 2018 are considered for the detailed citation based analysis. Further, classification of such articles has been done on the basis of common themes followed by a thorough content analysis. The citation based analysis suggests that there is a growing popularity of studies related to WCM in recent times. However, majority of the impactful studies are published in relatively lower category journals. This further intrigues us to explore the content of such studies. Based on the content, the studies are classified under five different themes. It is found that majority of the highly cited articles have examined the relation between the WCM and profitability of the firms. Moreover, repetitive uses of few proxies in such studies have also been identified. This finding most probably explains the reason behind so many highly cited articles getting published in relatively lower category journals. In view of this, this study tries to explore further scope of research on WCM and lists down potential research questions for the future researches. Firstly, it provides an idea about the most cited area of researches related to WCM and the recent growth of studies in this domain. Academicians can decide upon their future area of research based on the findings related to the proxies and outcome from these studies. Secondly, it shows the most popular avenue of publishing the articles related to WCM which will certainly motivate the researchers to pursue such study. It has been found from the analysis that majority of the impactful articles are published in lower category journals. Therefore, this study identifies the reason behind the same and lists down some innovative research questions to provide some future research directions. Thirdly, the finance managers can use this finding to identify the relevant consequences of poor WCM. Finally, it can serve as a reference point for all future ideas related to WCM. The paper classifies the present literature on WCM into five major themes and performs a content analysis of the same. This is essential as the content analysis highlights different proxies used as inputs which effectively drive efficient WCM. Moreover, the study also identifies the huge scope of future research in the domain of WCM. According to our limited knowledge, such extensive literature review on WCM is rare.
Description: Punam Prasad, Indian Institute of Management Ranchi; Sivasankaran Narayanasamy, Indian Institute of Management Ranchi; Samit Paul, Indian Institute of Management Calcutta; Subir Chattopadhyay, Indian Institute of Management Ranchi; Palanisamy Saravanan, Indian Institute of Management Tiruchirappalli
pp.827-861
DOI - doi: 10.1111/joes.12299
URI: https://onlinelibrary.wiley.com/doi/full/10.1111/joes.12299
https://ir.iimcal.ac.in:8443/jspui/handle/123456789/959
Appears in Collections:Finance and Control

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