IMPACT OF CORPORATE GOVERNANCE ON WORKING CAPITAL MANAGEMENT

The study summarizes the results of the study of the effect of corporate governance systems on the performance of working capital management in Indian-listed companies from different sectors. For the research a sample of one hundred and twenty-four companies for the period 2015 to 2019 took fifteen corporate governance elements and four working capital components from the annual reports. Regression study was carried out to determine the explanatory influence of the mixture of components of corporate governance on the constituents of the working capital. The findings of the analysis show that structures of corporate governance have a significant impact on the management of working capital indicating the greatest impact on current liabilities. The consequences of these results are that the boards of directors have an important role to play in the quality of working capital management of the businesses they control. Therefore they should continue to provide attainable policies on the management of working capital and remain vigilant in seeking feedback on their implementation.