Both studies used same questionnaire to enable comparison of practices. The results
show significant differences in working capital practices between both countries. The
policy setting and daily management of working capital accounts of Australian firms
are more centralized than that of US firms. Australian firms seem to lag behind US firms
in inventory, credit collection and marketable securities management.
Studies by Noreen et al. (2009) and Ricci and Morrison (1996) geared toward finding
out international WCM practices of multinational firms regarding international cash
management operations, international sales and foreign exchange activities. Findings of
the study by Ricci and Morrison (1996) reveal that firms appear to have high level of
sophistication in managing international cash operations. Howorth and Westhead
(2003) investigated the working capital practices of small- and medium-sized firms of
UK. Findings of their study conclude that small- and medium-sized firms report
different degrees of difficulty in obtaining finance, more particularly to meet their