TY  - JOUR
AB  - Purpose The purpose of this paper is to examine the relationship between working capital financing and firm performance for a sample of 437 non-financial Indian companies. In addition, this study examines the impact of financial constraints on working capital financing–performance relationship.Design/methodology/approach The study is based on secondary financial data of 437 non-financial Indian companies obtained from Capitaline database, pertaining to a period of 10 years (2007–2016). This study employs two-step generalized method of moments techniques to arrive at results.Findings Results of the study confirm the inverted U-shape relationship between working capital financing and firm performance. In addition, the authors also found that the firms that are likely to be less financially constrained can finance greater proportion of working capital using short-term debt.Originality/value This study contributes to the scant existing literature by testing the impact of financial constraints on the relationship between working capital financing and firm performance, representing a typical emerging market in India.
VL  - 15
IS  - 4
SN  - 1743-9132
DO  - 10.1108/IJMF-02-2018-0036
UR  - https://doi.org/10.1108/IJMF-02-2018-0036
AU  - Altaf Nufazil
AU  - Ahmad Farooq
PY  - 2019
Y1  - 2019/01/01
TI  - Working capital financing, firm performance and financial constraints: Empirical evidence from India
T2  - International Journal of Managerial Finance
PB  - Emerald Publishing Limited
SP  - 464
EP  - 477
Y2  - 2024/04/25
ER  -