Abstract:

Disparity in working capital causes problems in meeting short term goals which ultimately make it difficult to achieve the longer ones targets. This work is done with the intension to evaluate effects of working capital management on firms' performance in Pakistan. we used analytical modeling and presented Panel data GMM model which evaluated financial data of top 5 listed companies from 10 different sectors of Pakistan. Results disclose that there is a non-linear relationship between performance of a firm and working capital management in seven sectors of Pakistan. These findings are enormously valuable for managers to maintain optimum level of working capital for maximization of their profit.