Impact of Working Capital Management on Corporate Wellbeing : A Review of Selected Studies

The present study is a humble attempt to collect and review important literature both conceptual and analytically in nature that enumerates the significance of working capital management practices to different firms and industries, operating in the most competitive global business scenario over a considerable period of time. The studies pertaining to working capital management necessarily discuss about corporate practices in managing individual components of current assets, identifying the sources of working capital and controlling the cost of managing inventory, receivables and payables with the basic motto to have a trade-off between the liquidity-risk-profitability aspects of every organization, which ultimately aids to the shareholder's net worth. The major objectives of having such a literature survey is to understand the importance of the study, to analyze the past research work pertaining to the study area, and finally to identify the research gap, if any. In the current study a significant number of research works, conducted mostly in India, and a few more from abroad, were discussed on a selective basis out of numerous past literature available in the area after having a careful investigation of their coherently linkage with the theme of working capital management. All the literature so discussed are then placed in a sequential manner as and when they appeared to have a legible understanding. It is expected that the review of literature so conducted would enrich the fundamentals and induce necessary stimuli to the analytical mind for furthering the research on this area