Analyzing impact of corporate governance index on working capital management through fractal functions

This study investigates the influence of corporate governance standards on the effectiveness of working capital management in various sectors of the publicly traded companies in India. Corporate governance practices like board meetings, CEO tenure, size of the audit committee, board size and women directors are used for constructing a corporate governance index. Corporate governance policies' impact on working capital management efficiency is assessed by considering profit after tax and total assets as control variables. Data of listed companies with NSE is extracted from the Bloomberg database for the time frame spanning from 2013 to 2023. α-fractal function and regression model are used to describe the influence of corporate governance index on liquidity of some selected sectors of the listed Indian companies. This study evaluates how corporate governance impacts the working capital management of different sectors. The findings of this study indicate that corporate governance profoundly influences the efficacy of working capital management across different sectors of the Indian economy.