| dc.description.abstract | As the recession of firms due to inefficient capital management, Working Capital Management is now very important for every single manufacturing industry. However the impact of working capital management on firm’s performance is not similar in general. Pharmaceutical industry also has several specific characteristics that make it be different to others. The aim of the study is to investigate the effect of working capital management on firm’s performance in the case of pharmaceutical firms. The research is conducted into 4 components of working capital (Cash, Account Receivable, Account Payable and Inventories) by applying panel data analysis for 17 companies in pharmaceutical industry during period 2007-2014. Although, the results show that there is a significant negative relationship between working capital and firm’s performance, the impact of working capital is very little. Therefore, companies should focus on other aspects such as human resources management, market management, production management, price of output and quality of product to improve their performance. | en_US |
