Working Capital Management

Abstract

This chapter provides a comprehensive overview of the evolution of the working capital management literature from both theoretical and empirical perspectives. It examines key concepts of working capital management as an integrated concept, focusing on its unique features, optimal management strategies, key measures, determinants, and a range of impacts. It also delves into key components such as inventory investment and trade credit in detail and discusses the implications for firms and industries facing unprecedented challenges in today’s rapidly changing environment, including global supply chain risks and the rise of artificial intelligence.