Sushma Vishnani, Bhupesh Kr.

Shah (2007)It is felt that there is the need to study the role
of working capital management policies on profitability of a company. C onventionally, it has been seen that if a company desires totake a greater risk for bigger profits and losses, it reduces the size of its working capital inrelation to its sales. If it is interested in improving its liquidity, it increases the level of itsworking capital.However, this policy is likely to result in a reduction of the sales volume, therefore of profitability. Hence, a company should strike a balance between liquidity and profitability. Inthis paper an effort has been made to make an empirical study of Indian

Working Capital and Financial Management Practices in the Small Firm Sector
Michael J. Peel, Nicholas Wilson (2008)MIC england. Very little research has been conducted on the capital budgeting and working capital practices of small firms. The purpose of this paper is to presentthe results of a preliminary study on the working capital and financial management practices of asample of small firms located in the north of E ngland. In general, the results of the surveyindicated that a relatively high proportion of small firms in the sample claimed to usequantitative capital budgeting and working capital techniques and to review various aspects of their companies' working capital. In addition, the firms which claimed to use the moresophisticated discounted cash flow capital budgeting techniques, or which had been active interms of reducing stock levels or the debtors' credit period, on average tended to be more activein respect of working capital management practices. It hoped that the issues raised wouldstimulate further theoretical and empirical contributions on this neglected and important area of small business research.