Discussion: Working Capital Management

What factors does a financial manager need to consider when determining a suitable level of working capital for a corporation? Explain why you consider your chosen factors are important.

Why is the hedging principle important for helping firms based in KSA to manage their liquidity? How is this related to Saudi Vision 2030?

For your discussion post, your first step is to summarize the article in two paragraphs, describing what you think are the most important points made by the authors (remember to use citations where appropriate). For the second step, include the reference listing with a hyperlink to the article

Readings required:

Chapters 15-17 (PowerPoint Attached)

Dhole, S., Mishra, S., & Pal, A. M. (2019). Efficient working capital management, financial constraints and firm value: A text-based analysis. Pacific Basin Finance Journal, 58. https://doi.org/10.1016/j.pacfin.2019.101212

Fan, Y., John, K., Liu, F. H., & Tamanni, L. (2019). Security design, incentives, and Islamic microfinance: Cross country evidence. Journal of International Financial Markets, 62, 264-280. https://doi.org/10.1016/j.intfin.2019.08.002

Zhang, X., Zhang, Z., & Zhou, H. (2020, March). Oil price uncertainty and cash holdings: Evidence from China. Energy Economics, 87-97. https://doi.org/10.1016/j.eneco.2020.104732

de Vries, J. (2020). Identifying inventory project management conflicts: Results of an empirical study. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2020.107620