Assessment of Working Capital Finance
World Applied Sciences Journal 12 (11): 1967-1973, 2011
ISSN 1818-4952
© IDOSI Publications, 2011
Practices of Working Capital Policy and Performance Assessment Financial
Ratios and Their Relationship with Organization Performance
1
1
Ghulam Shabbir Khan Niazi, 2Ahmed Imran Hunjra, 3Majid Rashid,
4
Syed Waqar Akbar and 5Muhammad Naeem Akhtar
Quaid-I-Azam, School of Management Sciences, Quaid-I-Azam University Islamabad, Pakistan
2
Scholar Iqra University Islamabad, Pakistan
3
Allama Iqbal Open University, Islamabad, Pakistan
4
Quaid-e-Azam University Islamabad, Pakistan
5
Iqra University, Islamabad, Pakistan
Abstract: The purpose this study is to highlight the application of working capital policy and the performance assessment financial ratios and to determine their relationship with organization performance. The target respondents were the finance executives/financial analysts of the companies. 64 properly filled questionnaires were processed for analysis. This study concludes that the finance executives consider that the proper practices of working capital and financial ratios are very important for the growth and performance of the organization. This research study also finds that there is positive and significant relationship between these practices and organization performance.
Key words:Working capital policy
Financial ratios
Significant Relationship
INTRODUCTION
The corporate culture depends on attitudes, beliefs and company management's values, education and work experience and its impact on corporate decision making processes. When the executives were rewarded (or punished) for their work, it’s not written in company policy, but referred to be an important corporate culture's components. The IMF report provides strong evidence regarding the crises that took place in 1997, was an out come of poor corporate sector [1]. Working capital policy relates to the management of short term assets and
liabilities
ISSN 1818-4952
© IDOSI Publications, 2011
Practices of Working Capital Policy and Performance Assessment Financial
Ratios and Their Relationship with Organization Performance
1
1
Ghulam Shabbir Khan Niazi, 2Ahmed Imran Hunjra, 3Majid Rashid,
4
Syed Waqar Akbar and 5Muhammad Naeem Akhtar
Quaid-I-Azam, School of Management Sciences, Quaid-I-Azam University Islamabad, Pakistan
2
Scholar Iqra University Islamabad, Pakistan
3
Allama Iqbal Open University, Islamabad, Pakistan
4
Quaid-e-Azam University Islamabad, Pakistan
5
Iqra University, Islamabad, Pakistan
Abstract: The purpose this study is to highlight the application of working capital policy and the performance assessment financial ratios and to determine their relationship with organization performance. The target respondents were the finance executives/financial analysts of the companies. 64 properly filled questionnaires were processed for analysis. This study concludes that the finance executives consider that the proper practices of working capital and financial ratios are very important for the growth and performance of the organization. This research study also finds that there is positive and significant relationship between these practices and organization performance.
Key words:Working capital policy
Financial ratios
Significant Relationship
INTRODUCTION
The corporate culture depends on attitudes, beliefs and company management's values, education and work experience and its impact on corporate decision making processes. When the executives were rewarded (or punished) for their work, it’s not written in company policy, but referred to be an important corporate culture's components. The IMF report provides strong evidence regarding the crises that took place in 1997, was an out come of poor corporate sector [1]. Working capital policy relates to the management of short term assets and
liabilities