Skill and Strategy: How Managerial Ability Drives Working Capital Efficiency

The study demonstrates managerial ability has a strong influence on corporate working capital policies. This advocates prevalence of certain fundamental concepts such as viz. Upper Echelon Theory (UET), Resource-Based View (RBV), and Agency Theory (AT). From managerial point of view, it is suggested to adopt strategic approaches in practicing WCME that will enhance firm's competitive advantage and long-term sustainability.