An Empirical Study on Effects of Working Capital on  Profitability (With Special Reference to Associated  Cement Companies Limited)

Dr. S. Saravanan; S. Ramganesh

Volume : III, Issue : III, March - 2013

An Empirical Study on Effects of Working Capital on Profitability (With Special Reference to Associated Cement Companies Limited)

Dr. S. Saravanan, S. Ramganesh

Abstract :

The heart of corporate finance literature is long term investment, capital structure and different valuation methods. They have been focus of intention for many researchers in the past. In short it is mainly concern with the long term financial planning or decisions. On the other hand it is believed that financial decisions of short term assets and short term liabilities management also influence the stock price. These financial decisions are vital because they demonstrate the financial stability of the firm and market develops perception about the firm accordingly. In order to find new ways of value creation, most of the empirical studies focused on inventory management and account receivables management but working capital management has a oader view. The present piece of research analyse the impact of working capital on profitability of Associated Cement Companies Limited.