Document Type : Research Paper

Authors

• Wahiduzzaman Khan ¹
• Alim Al Ayub Ahmed ²
• Md. Shakawat Hossain ³
• Taposh Kumar Neogy ⁴

¹ School of Business, Ahsanullah University of Science and Technology, Dhaka, Bangladesh

² School of Accounting, Jiujiang University, Jiujiang, Jiangxi, China

³ Department of Accounting & Information System, Jagannath University, Dhaka 1100, Bangladesh

⁴ Institute of Business Administration (IBA), National University, Rajshahi, Bangladesh

Abstract

The purpose of the study is to examine the practices implemented by Bangladeshi listed companies on the Dhaka Stock Exchange (DSE) in the knowledge of working capital management. The author collects data from 97 financial managers using a self-structured questionnaire consisting of 32 questions on a Likert scale, and uses different statistical methods to evaluate for statistical significance. The result suggested that behavioral bias exerts significant impact on all parameters of working capital, but a poor relationship for account payable, in the context of Bangladeshi manufacturing and service companies. Cross-redundancy value should be greater than zero in order to determine the predictive efficiency of the system within this research. The study result reflects that the values of a cross-validated redundancy indicate a fair prediction standard for the model. Although dealing with various manufacturing and service sectors in Bangladesh, responses from across those sectors are very difficult to produce. The evidence diminishes questions about non-response bias and the willingness of Bangladeshi companies to generalize the results. This research fills a void in the literature by providing understandings into performs followed by Bangladeshi companies in dealing WCM and its mechanisms, by updating and expanding previous work on WCM.

Keywords

• Behavioral corporate finance
• Interactive Bias
• WCM
• Self-serving biasness
• Level of confidence