Investment portfolio of Indian companies

Abstract

A well designed and implemented working capital management is expected to contribute positively to the creation of a firm s value. The purpose of this contemporary concerns study (CCS) is to examine the trends in investments by firms as a part of their working capital management. The trends in working capital needs are examined to identify the causes for any significant differences between the industries. The dependent variable, investment as a percentage of total assets is used as a proxy to compare different firms based on total asset size, industry wise and group wise. The relation between working capital management and corporate profitability is investigated for a sample of 397 firms, using panel data analysis for the period 2001-2008.