Journal of Advanced Research in Operational and Marketing Management

Evaluating the Relationship Between Working Capital Management and Profitability: Insights from Nepal

Anjay Kumar Mishra — 2025-12-24

Working capital management plays a vital role in determining a company's profitability. Properly managing the components of working capital, such as inventory, receivables, and payables, helps firms optimise cash flow, reduce financing costs, and improve operational efficiency. Based on this understanding, the present study investigates the relationship between working capital management and profitability in selected companies in Nepal. The study uses widely accepted measures of working capital management, including the average inventory turnover period, average receivables collection period, average payment period, and the cash conversion cycle. To provide a comprehensive analysis, both statistical and descriptive methods are applied to examine the data. Analyses are conducted at two levels: aggregate, which considers the overall working capital management, and disaggregate, which examines individual components separately. The process produces mixed results. While most individual components show a positive impact on profitability, in one case, no significant association is found. In difference, the aggregate analysis indicates a strong negative and significant relationship between overall working capital management and profitability. Further exploration of the individual elements of working capital reveals that most components, such as inventory management and payment period, have a robust positive effect on profitability. The analysis found a strong negative correlation between the Working Capital Ratio (WCR) and profitability for BNBL (r = –0.909). The exception is the average receivables collection period, which shows a weak statistical association with profitability. These findings suggest that while efficient working capital management generally enhances profitability, the impact of specific components can vary. Overall, the study emphasises the importance of a balanced approach to managing working capital to ensure sustainable financial performance in Nepalese public listed companies.

Risk-return relationship in India’s mutual fund market: an exploration along capital asset pricing model

Fida Muneer — 2026-02-21

The mutual fund industry has emerged as a significant component of India’s financial system, reflecting increasing investor participation and deepening capital markets. This study examines the growth trends, performance behaviour, and risk–return dynamics of selected mutual funds in India over the period 2016–2025, with particular emphasis on testing the validity of the Capital Asset Pricing Model (CAPM). The analysis is based entirely on secondary data comprising Assets Under Management (AUM) and daily Net Asset Values (NAVs) of 30 selected mutual funds across equity, sectoral, thematic, and debt categories. Monthly returns and risk measures were analysed using time-series regression and ordinary least squares (OLS) estimation. The results indicate a strong and statistically significant growth trend in the Indian mutual fund industry, despite short-term disruptions. The performance trend analysis reveals limited evidence of return persistence over time. The risk–return analysis provides substantial empirical support for the CAPM in the case of equity-orientated mutual funds, including small-cap, mid-cap, large-cap, sectoral, and thematic schemes, where market risk is positively and significantly priced. In contrast, debt-orientated mutual funds exhibit weak conformity to the CAPM, reflecting the dominance of interest rate and credit risk factors. The findings contribute to the empirical literature on mutual fund performance and asset pricing in emerging markets.

Public Trust and Attitude towards Green Marketing Strategies in Northern Kerala

Dr. V. Vijayakumar — 2026-02-21

This research explores the trust and attitudes of consumers towards green marketing strategies implemented by companies in Northern Kerala, specifically focusing on the districts of Kasaragod, Kannur, Wayanad, and Kozhikode. Green marketing refers to the promotion of environmentally friendly products and services and has gained increased relevance in the context of rising global awareness about sustainability and ecological conservation. The core objective of the study is to assess public perception of green marketing initiatives, evaluate their level of awareness about green products, analyse consumer purchasing behaviour, and examine their willingness to pay a premium for such products. To achieve these objectives, primary data was collected from 200 respondents through a structured questionnaire comprising both closed and open-ended questions. The sample was carefully designed to include diverse age groups, educational levels, occupations, and a balanced mix of urban and rural populations across the selected districts. Additionally, secondary data from academic journals, articles, and online resources was used to support the analysis. The findings indicate that while approximately 78% of respondents were aware of green marketing, only 64% had actually purchased green products, and among them, just 41% reported high satisfaction. Price sensitivity emerged as a significant deterrent, with 52% of non-buyers citing high prices as a reason for avoiding green products. Although 49% of respondents expressed willingness to pay more, their motivation was driven more by concerns for environmental protection and personal well-being than by brand loyalty. The study concludes that while there is a fair level of awareness and a generally favourable attitude towards green marketing in Northern Kerala, consumer trust remains tentative due to scepticism about companies’ green claims and the premium pricing of such products. Limited product knowledge and inadequate communication about the long-term benefits of green alternatives further restrict consumer participation. The paper recommends that companies invest in transparent marketing practices and educational campaigns to build credibility. Moreover, policy interventions such as subsidies or tax incentives could help make green products more affordable and accessible. A joint effort from businesses, government bodies, and civil society is essential to foster a strong green marketing ecosystem and encourage sustainable consumer behaviour across the region.