Factors that Influence the Efficiency of Working Capital Requirements in Nepal

The purpose of this study is to assess the perception of financial professionals on the factors affecting the efficiency of working capital requirements in Nepal. These are the factors that influence the working capital requirements in Nepal. To know the perception of financial professions, this study considered a sample of 200 companies listed on the Nepal Stock Exchange (NSE). These companies are categorized into 9 groups. These are banks, development banks, finance companies, insurance companies, hotels, hydropower companies, trading companies, manufacturing and processing companies, and others in the others category. A quantitative cross-sectional survey research approach is used in this study. Through literature research and validation by experts and working capital management firm practitioners, eighteen major factors influencing working capital were discovered and shortlisted for inclusion in the questionnaire. The study was carried out using a structured questionnaire to examine the most crucial elements influencing the efficiency of working capital requirements in Nepal, and various statistical methods were used to analyse survey respondents' perspectives. This research contributes to the body of knowledge on the factors that influence working capital requirements and will benefit NSE-listed companies. The study is the first of its kind to look at the crucial aspects that contribute to working capital requirements in Nepal