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The study conducted by Weinraub and

Visscher (1998) on US market of 126


industrial firms used Aggressive Investment
Policies. Aggressive Investment policy results
to keep current assets at minimum level
taking the advantage from current debt, by
implementing risk strategy decisions and
managing the companies in this way. If
manager is using this risk policy, he tries to
generate the cash from the short term loans
and provide the cash to the current assets
from these loans.
Mehmet and Eda (2009) analyzed the
relationship between the efficiency levels of
WCM to ROTA of Istanbul stock exchange. The
data was collected from the 49 production firms
that were traded in ISE and the year started from
1993 to 2007. There were two models used to
find the relationship between the WCM and
ROTA (return on total asset). In 1st model, they
used ROTA, CCC, CR and NWC as a
percentage of total assets. In 2nd model, they
dealt with ARP, APP, and inventory payable. The
results showed that there is negative relation
between them.
Gill et al (2010) analyzed the relationship
of the working capital management of the
firms and the profitability of the firms. A
positive and significant relationship was
analyzed among the cash conversion
cycle and the profitability of the firms.
Charitou et al (2010) had analyzed the
relationship between the profitability of the firms
and the working capital management. For this
purpose, they made a hypothesis i.e. working
capital management has the positive and the
significant impact on the financial performance of
the firms. They used the multivariate regression
analysis in case of the firms listed on the Cyprus
Stock Exchange. They showed that creditor’s
payment period, sales outstanding and the days
in inventory have a significant relationship with
the profitability of the firms.
Baños-Caballero et al (2012) examined
the relationship between the working
capital management and profitability of the
firm with the small and medium enterprise
of the Spanish companies. Their study
finds that the working capital level can
maximize the profitability of small and
medium enterprise.
Uchenna et al (2012) have analyzed the
impact of the Cash Conversion Cycle on
the profitability of the top 5 beer
manufacturing firms. Multiple regression
Model was used and the data was in the
form of cross-sections. The empirical
results of their research had showed that
in the manufacturing firms, CCC and sales
growth are positively related to the
profitability of the manufacturing firms.
Mary et al (2012) have researched upon
those factors that influence the profitability
of the brewing firms in Nigeria. They took
the data from their financial statements
and multiple regression analysis was run.
Their research showed that the ratios like
Account receivables to sales, inventory to
CGS and general expenses to sales have
the significant relationship with the
profitability of the brewing firms.
Knauer and Wöhrmann (2013) suggested
that the efficient management of the
current assets and current liabilities
strengthen the firm’s financial condition.
They analyzed that there was a positive
relationship between the working capital
management and the firm’s profitability.
Moreover they also suggested that the
working capital management also plays a
vital role for the liquidation of the firm.
Bhatia and Srivastava (2016) have
analyzed the impact of the working capital
management on the profitability of the
firms in the merging market. For this
purpose, they had used Ordinary Least
Square method. They used the panel data
of 179 firms listed on the Bombay Stock
exchange. They concluded that the firms
must have to manage the working capital
in an efficient and effective way.

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