Nadeem Ahmed Sheikh


The core objective of this paper is to investigate whether firm specific variables and board attributes affect the working capital ratio of textile composite, textile spinning, textile weaving and overall sample of firms listed on KSE during 2008-2014. Profitability is positively related to working capital ratio in textile spinning, textile weaving and in over sample of firms. Alternatively, profitability is inversely related to working capital ratio in textile composite. Firm size, leverage and assets tangibility have shown consistent results and negatively related to working capital ratio in all regressions. Age is positively related to working capital ratio in textile composite and in overall sample of firms. Board size is unrelated to working capital ratio. Board composition is positively (in textile composite only) while CEO duality is negatively (in textile spinning only) related to working capital ratio. In sum, firm specific variables have a significant while board attributes have a minute impact on working capital ratio. 


Board attributes, Firm specific variables, Working capital, Pakistan.


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DOI: http://dx.doi.org/10.22555/pbr.v20i3.598


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