Working Capital Investment and Financing Policies of Selected Pharmaceutical Companies in Bangladesh

Abstract

The study aims to examine the relative relationship between the working capital investment and financing practices of the five selected listed pharmaceutical companies in Bangladesh over a period of five years. It is observed that the pharmaceuticals have almost same policies regarding the working capital investment corresponding to working capital finance. It is also found that there is a significant difference in the working capital investment and financing policies among the pharmaceuticals but there is an interrelation between the aggressive working capital investment policy corresponding to conservative working capital financing policy of the pharmaceuticals over the study period and vice-versa. Relatively aggressive working capital investment policy balanced by relatively conservative working capital financing policy of the pharmaceutical sector of Bangladesh is also viewed by the study.

Keywords: Pharmaceuticals, Working Capital, Policy, Ratio, Correlation, T-test, F-test.