Impact of Working Capital Management and Macro Economic Variable on Firm Performance

Abstract

The purpose of this study is to check the impact of Working Capital Management and Macro Economic variable on performance of organization in the food and sugar sector of Pakistan. The sample data is taken from secondary source tl·om PSX, State Bank of Pakistan and food and sugar organizations. This study utilizes longitudinal design from time period of study is 11 years from 2010 to 2020. Descriptive statistics, regression, fixed effect models are analysis that are used to evaluate the results. The findings of this study are that ITP, GNE and LEV has the negative relation with ROA and APP and ACP has positive relation with ROA for sugar sector. ITP and LEV have the positive relationship with ROE and APP,ACP, GNE has negative relation with ROE in sugar sector. ACP, ITP,APP and GNE has the negative impact on Net Profit Margin and APP has the positive relation with Net Profit Margin for Sugar Sector. The findings of this study for the food sector is that APP, GNE and LEV has the negative relation with ROA and ACP and ITP has positive relation with ROA for Food sector. ITP,ACP, APP, LEV and GNE shows negative relationship with ROE in Food sector. ACP and ITP has the negative impact on Net Profit Margin and APP GNE and LEV has the positive relation with Net Profit Margin for food Sector Future researcher can evaluate the impact of working capital management and other macro-economic variable on firm's performance