Publication Date


Document Type



Business | Finance and Financial Management


Published in Corporate Ownership and Control. Permission has been secured to include this contribution in the Liberty University’s scholarly repository. All Rights Secured. No copy of this file may be sold or reprinted in whole or in part. To purchase the entire journal issue that contains this contribution, please visit the website of the publication:

Obradovich, John. “Promoter Ownership and Working Capital Management Efficiency of Indian Manufacturing Firms.” Corporate Ownership and Control 12 2 (2015): 598-607.


Poor cash flow leads to insolvency of the firm. One of the most important factors that lead to poor cash flow is the inefficiency of working capital management. This study investigates relationships between promoter ownership and working capital management efficiency of Indian manufacturing firms. A sample of 151 manufacturing firms was selected from Top 500 Companies listed on the Bombay Stock Exchange (BSE) for a period of five years (from 2010-2014). Results indicate that changes in promoter ownership play a role in changing working capital management efficiency of Indian manufacturing firms by reducing their cash conversion cycle and by improving cash conversion efficiency. This study contributes to the literature on the factors that cause changes in working capital management efficiency. The findings may be useful for financial managers, operations managers, investors, financial management consultants, and other stakeholders.