Impact of Working Capital Management on Corporate Performance: An Empirical Analysis of Selected Public Sector Steel Companies in West Bengal Mr. Gupta Bijoy1, Prof.Dr. Paul Kartick Chandra2 1Assistant Professor, Department of Business Administration, Raniganj Institute of Computer and Information Sciences, Raniganj, West Bengal 2Professor and Head, Department of Commerce, School of Economics and Commerce, ADAMAS University, Barasat, (West Bengal) Abstract Indian steel industry plays a significant role in the economic growth. The present need of Indian economy is rapid industrialization. The steel manufacturing company is the second largest employer of the country after primary sector i.e., agriculture and it contributes over 2 percent of Gross Domestic Product (GDP) to the nation and provides employment opportunity for an odd 20 lakh jobs in the country. The present article makes an attempt to examine the effect of working capital management on the corporate performance of selected public sector iron and steel companies in West Bengal during the period of 12 years i.e. from 2001–02 to 2012–13. The main purpose of the study is to measure the degrees of association between profitability i.e., ROA and the working capital management ratios. Comparative analyses have been conducted to assess the better performing company/ies and also to identify the causes of better performance. To conduct the study, three major public steel companies operating under SAIL in the study area have been selected namely ASP, DSP and IISCO. Secondary financial data for the period of twelve years have been extracted from the audited annual reports of the companies. Based on the data analysis, relevant conclusion has been drawn; it also presents some valid recommendations to draw the attention of the management of the selected companies towards working capital management. Top Keywords Working Capital, Liquidity, Profitability. Top |