Topics in Finance: Part IX — Working Capital Management

Abstract:     
The final topic in a series looking at financial management from a theoretical perspective, working capital management provides the focus of the current article. We investigate how three key axioms — the risk-return tradeoff, agency conflicts, and stockholder wealth maximization — relate to this activity that occupies much of the financial manager’s time.

Number of Pages in PDF File: 10

Keywords: Financial Management, Working Capital Management, Risk-Return Tradeoff, Agency Conflict, Stockholder Wealth

JEL Classification: G32, G31

working papers series