The research aims to analyse how financial performance in the Pharmaceuticals and Chemicals industry of an emerging economy is impacted by Cash Flow Management (CFM). The study will examine how Operating Cash Flows (OCF), Investing Cash Flows (ICF) and Financing Cash Flows (FCF) impact the two main financial performance indicators: ROA and ROE. The research adopts a quantitative research design. A Fixed Effect (FE) Panel Data Regression model was run on a sample of 20 listed firms in the Dhaka Stock Exchange (DSE) from 2019 to 2024. A positive relationship with 1% significance level is observed between OCF and financial performance (ROA and ROE). However, a statistically significant relationship cannot be found between ICF and FCF and the Financial Performance metrics. The study uses a limited dataset of 120 firm‑year observations from the pharmaceuticals and chemicals industry in Bangladesh, which may restrict the generalizability of the findings. The study illustrates managerial implications and importance for the improvement of financial performance with efficient CFM. A notable research gap is addressed in an emerging economy context (Bangladesh) regarding the relationship between the impact of CFM on financial performance.
Mirza Fahim Ahmed (Sun,) studied this question.