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Underlying Relationship between Working Capital Management and Profitability of Pharmaceutical Companies in India

Received: 4 June 2015     Accepted: 12 June 2015     Published: 15 June 2015
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Abstract

Purpose of the study: This research work investigates the underlying relationship between working capital management and profitability of pharmaceutical companies in India. Background of the study: Effective working capital management perks up firms’ profitability and liquidity position, and as a result growing the firm’s market value. Methodology: This study is based on secondary data obtained from centre for monitoring Indian economy database for the period from 2003 to 2013. In the course of examination, descriptive statistics, correlation statistics and multiple regression test have been used. Results: Multiple regression tests corroborate a lower degree of relationship between the working capital management and profitability under study. Findings of the study: The company manger would anxiety on working capital management performance, mainly unexplained variables in justification of making shareholder wealth.

Published in American Journal of Theoretical and Applied Business (Volume 1, Issue 1)
DOI 10.11648/j.ajtab.20150101.15
Page(s) 27-36
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Working Capital Management, Liquidity, Profitability, Pharmaceutical Company, India, Multiple Regression Test

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  • APA Style

    Amalenu Bhunia, Amit Das. (2015). Underlying Relationship between Working Capital Management and Profitability of Pharmaceutical Companies in India. American Journal of Theoretical and Applied Business, 1(1), 27-36. https://doi.org/10.11648/j.ajtab.20150101.15

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    ACS Style

    Amalenu Bhunia; Amit Das. Underlying Relationship between Working Capital Management and Profitability of Pharmaceutical Companies in India. Am. J. Theor. Appl. Bus. 2015, 1(1), 27-36. doi: 10.11648/j.ajtab.20150101.15

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    AMA Style

    Amalenu Bhunia, Amit Das. Underlying Relationship between Working Capital Management and Profitability of Pharmaceutical Companies in India. Am J Theor Appl Bus. 2015;1(1):27-36. doi: 10.11648/j.ajtab.20150101.15

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  • @article{10.11648/j.ajtab.20150101.15,
      author = {Amalenu Bhunia and Amit Das},
      title = {Underlying Relationship between Working Capital Management and Profitability of Pharmaceutical Companies in India},
      journal = {American Journal of Theoretical and Applied Business},
      volume = {1},
      number = {1},
      pages = {27-36},
      doi = {10.11648/j.ajtab.20150101.15},
      url = {https://doi.org/10.11648/j.ajtab.20150101.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20150101.15},
      abstract = {Purpose of the study: This research work investigates the underlying relationship between working capital management and profitability of pharmaceutical companies in India. Background of the study: Effective working capital management perks up firms’ profitability and liquidity position, and as a result growing the firm’s market value. Methodology: This study is based on secondary data obtained from centre for monitoring Indian economy database for the period from 2003 to 2013. In the course of examination, descriptive statistics, correlation statistics and multiple regression test have been used. Results: Multiple regression tests corroborate a lower degree of relationship between the working capital management and profitability under study. Findings of the study: The company manger would anxiety on working capital management performance, mainly unexplained variables in justification of making shareholder wealth.},
     year = {2015}
    }
    

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    T1  - Underlying Relationship between Working Capital Management and Profitability of Pharmaceutical Companies in India
    AU  - Amalenu Bhunia
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    T2  - American Journal of Theoretical and Applied Business
    JF  - American Journal of Theoretical and Applied Business
    JO  - American Journal of Theoretical and Applied Business
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    SN  - 2469-7842
    UR  - https://doi.org/10.11648/j.ajtab.20150101.15
    AB  - Purpose of the study: This research work investigates the underlying relationship between working capital management and profitability of pharmaceutical companies in India. Background of the study: Effective working capital management perks up firms’ profitability and liquidity position, and as a result growing the firm’s market value. Methodology: This study is based on secondary data obtained from centre for monitoring Indian economy database for the period from 2003 to 2013. In the course of examination, descriptive statistics, correlation statistics and multiple regression test have been used. Results: Multiple regression tests corroborate a lower degree of relationship between the working capital management and profitability under study. Findings of the study: The company manger would anxiety on working capital management performance, mainly unexplained variables in justification of making shareholder wealth.
    VL  - 1
    IS  - 1
    ER  - 

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Author Information
  • Department of Commerce, University of Kalyani, West Bengal, India

  • Department of Commerce, University of Kalyani, West Bengal, India

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