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The objective of the current study is to investigate the various factors determining the working capital requirements in Pakistani non-financial firms by taking into account different economic and financial variables relating to the business over a period of six years (2004)(2005)(2006)(2007)(2008)(2009). The present study is anticipated to add to improve understanding the financial and non-financial firm related factors that form up working capital requirements of firms in the emerging markets like Pakistan. This paper contributes the literature on the determinants of working capital management in non-financial firms in at least two ways. Firstly, it focuses on the Pakistani non-financial firms where only limited study has been conducted. Secondly, it confirms some of the findings of previous studies. For the purpose of sampling, only listed companies from Karachi Stock Exchange were selected. Here, the study will discuss about the data source, sample size and variables used in the study. Descriptive analysis, ANOVA, Correlation and Regression analysis will be applied on the panel data to see the relationship of different variables with Working Capital management. More specifically, the key objectives are:To determine the factors influencing the working capital requirements for 385 Pakistani firms listed on Karachi Stock exchange.(ii) To find out the relationships between working capital and different factors like size, leverage, economic growth, etc.(iii) To draw conclusion about these determinants of working capital management requirements.Keywords: working capital, management, determinant factors, non-financial firms Literature ReviewShin and Soenen (1998) analyzed a large sample of listed American companies during 1975-1994 and found a strong negative relationship between Cash Conversion Cycle and corporate profitability. Weinraub and Visscher (1998) maidenly attempted to analyze the relative association between aggressive and conservative Working Capital practices. A Simple Regression Model was run that provide a great and significant negative relationship between industry asset and liabilities policies. They urged that whenever relative aggressive Working Capital assets policies were pursued it were balanced by relative conservative Working Capital financing policies. They also found that each industry had its own and relatively different management policies.

Capital structure is considered one of the most debatable and controversial subjects in corporate finance. However, little is known about capital structure determinants of firms in the South Asian region. This study attempts to address the gap by not only investigate the impact of firm and country‐specific factors on firms' capital structure across the South Asian Association for Regional Cooperation (SAARC) region but also offer a cross‐country comparison. Results reveal significant relationships between tangibility, profitability, liquidity, firm size, stock market development, economic growth and firm leverage, suggesting that firms in the region are more likely to make their capital structure decisions following pecking order theory. We also find significant differences across countries and debt maturities.

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