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Title WORKING CAPITAL MANAGEMENT AND CORPORATE CASH HOLDING, A COMPARATIVE ANALYSIS OF CONVENTIONAL AND ISLAMIC BANKS IN PAKISTAN

Author(s) Izhar Ullah

Abstract ABSTRACT This study was conducted in order to understand the impact of Working capital management on corporate Cash Holding in the context of conventional and Islamic banks in Pakistan. Working capital is the life blood for all types of businesses. In this study the panel data is used for 31 banks, in which 24 banks are conventional and 7 banks are Islamic banks. In this study the data was collected from the annual reports of both conventional and Islamic banks for the period of 2011 to 2017. The data was analyzed through various statistical techniques such as correlation, Fixed effect model, Random effect model. The results of all the above statistical techniques demonstrated that the proxy of Working capital management such as cash Flow ratio (CFL) has positive insignificant effect on the corporate Cash Holding of conventional banks in Pakistan. The study also confirmed positive significant effect of both firm Size and firm leverages on the corporate Cash Holding of conventional banks. The study has also predicted very similar results for Islamic banks portfolio. In this regards, the results have shown positive, but insignificant effect of cash flow ratio (CFR) on the corporate Cash Holding of the Islamic banks. The results have also confirmed the positive significance effect of control variables such that firm Leverages and firm size on the corporate Cash Holding of the Islamic banks portfolios. The study has also certain managerial implications for both policy makers and investors. The study has highlighted the importance of Working capital management in managing corporate Cash Holding for the management of both conventional and Islamic banks in Pakistan. Keywords: Working capital management, Cash holding, Cash Flow Ratio.

Type Thesis/Dissertation MS

Faculty Management Sciences

Department Management Sciences

Language English

Publication Date 2020-05-19

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