Journal article

International Journal of Economics and Finance


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Publication Details

Author list: Sathyamoorthi R, Mbekomize C, Mapharing M, Popo S

Publication year: 2018

Volume number: 10

Issue number: 12

Start page: 135

End page: 149

Number of pages: 15



The paper presents the findings of the analysis of the impact of ecorporate governance mechanisms on working capital management efficiency in the listed companies of the Consumer services sector in Botswana.Botswana. . Eight corporate governance elementss and seven working components were extracted from the annual reports of a sample of six companies for the period 2012 to 2017 for the analysis. . Thirty six observations were obtained. Pearson correlations were executed to determine the relationship between corporate governance elements and working capital l components. OLS regression analysis was performed to establish the explaining power of the combination of corporate governance elements on each of the working capital components. The correlation analysis shows that number of non-executive directors has a significant negativenegativenegativenegativenegativenegative but moderate relationshipp with cash conversion cycle and number of board subcommittees has significant positive but moderate relationship with Debt ratio. The regression results suggest that corporate governance mechanisms have a significant impact on working capital management, the highest impact being rreflected on inventory conversion period.. The implications of these findings are that boards of directors have a significant role to play in working capital management efficiency of the companies they govern.They should therefore continue providing attainable policies on working capital management and remain vigilant on demanding feedback on their implementations.


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Last updated on 2022-29-11 at 11:59