Analyzing the impact of the determinants of working capital management on performance of automobile sector in Pakistan

Abstract

The purpose of study to examine the impact of working capital management determinants on performance of automobile sector operate in Pakistan. For determinants of working capital Size of firm, growth of firm, cash flow,leverage and liquidity of the firm were used. Data was collected from the annual reports of the selected companies and selected period for study was 2013 to 2017.For the finding of study descriptive correlation and regression test run by using the Sestito models were used for testing return on asset and return on equity was used dependent variable and find both variable relationship with determinants of working capital management. The model was fit based on model summery R square value which shows that dependent variable affected by independent variable.in the first model Firm size and return on assets has significant negative relationship while cash flow and liquidity has significant positive relationship with return on assets. In second model firm size has s significant negative relationship with return on equity while cash flow has significant positive relationship.