Corporate Governance and Working Capital Management in Manufacturing Firms: A Systematic Literature Review and Future Research Agenda

Working capital management is a crucial corporate management function and one of the most significant corporate financial decisions that businesses undertake. Working capital management refers to the administration of an organization's short-term assets and resources. It is imperative for the majority of organisations to maintain sufficient liquidity to pay their expenses and conduct their daily operations through the implementation of effective working capital management. This article provides a methodical assessment of “corporate governance and working capital management in manufacturing firms”. Corporate governance (CG) attributes, particularly "board independence, meeting frequency, and separation of CEO duality", significantly enhance working capital management (WCM) and overall performance of Indian manufacturing enterprises, according to this systematic investigation. Through improved management of receivables, inventories, and cash—effective WCM improves operational efficiency, company stability, and profitability. The results highlight the need of including effective governance policies to enhance WCM, which influences financial stability and development by itself. For corporate managers, investors, and legislators in formulating policies and strategies to guarantee long-term commercial success, this assessment offers insightful analysis.