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MF 39,2

116
Received 17 June 2012 Revised 3 October 2012, 16 October 2012 Accepted 1 November 2012

The impact of corporate governance on working capital management efficiency of American manufacturing firms
Amarjit S. Gill
The University of British Columbia (Okanagan Campus), Kelowna, Canada, and

Nahum Biger
School of Business, Academic Center Carmel, Haifa, Israel
Abstract
Purpose – The purpose of this study is to investigate the impact of corporate governance on working capital management efficiency. This study also seeks to extend the findings of Gill and Shah. Design/methodology/approach – This study applied a co-relational research design. A sample was selected of 180 American manufacturing firms listed on the New York Stock Exchange (NYSE) for a period of 3 years (from 2009-2011). Findings – The findings of this study indicate that corporate governance plays some role in improving the efficiency of working capital management. Research limitations/implications – This is a co-relational study that investigated the association between corporate governance and working capital management efficiency. There is not necessarily a causal relationship between the two, although the paper provides some conjectures to the findings. The findings of this study may only be generalized to firms similar to those that were included in this research. Originality/value – This study contributes to the literature on the factors that improve the efficiency of working capital management, and in particular on the association between several features of corporate governance and the efficiency of working capital management. The findings may be useful for financial managers, investors, financial management consultants, and other stakeholders. Keywords Corporate governance, Working capital management, Board size, CEO duality, CEO tenure, Audit committee, Manufacturing industries,

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