ISSN: 2308-7056 Rasool, Hamid, Ullah & Ali (2022) 68 I www.irbas.academyirmbr.com July 2022 International Review of Basic and Applied Sciences Vol. 10 Issue.3 R B A S Working Capital Management, Firm Value and Financial Constraints: Empirical Evidence from non-financial firms of Pakistan FAIZ RASOOL Research Scholar, The Institute of Business Management and Sciences, University of Agriculture, Faisalabad. Email: faizrasool.uaf@gmail.com KASHIF HAMID Assistant Professor, The Institute of Business Management and Sciences, University of Agriculture, Faisalabad. Email: kashif.boparai@gmail.com MUHAMMAD FAHEEM ULLAH Research Scholar, The Institute of Business Management and Sciences, University of Agriculture, Faisalabad. Email: muhammadfaheemullah6@gmail.com MUHAMMAD AHSAN ALI Research Scholar, The Institute of Business Management and Sciences, University of Agriculture, Faisalabad. Email: ahsankathana79@gmail.com Abstract The aim of this study is to investigate the impact of working capital management, financial constraints and firm value. For this purpose data of 178 non-financial firms listed on PSX has been taken from 2015 to 2020. Descriptive statistics, Correlation, OLS, the Fixed Effect and Hausman test has been used to determine the outcomes. The outcomes of the study revealed that working capital and financial constraints affect the value of the company. The empirical results show that there is no impact of firm age and working capital management on the firm value. Firm value has a significantly positive correlation with Assets Tangibility, Leverage and Net-Working Capital where’s negative association with the Size of firm, Cash flow of the firm and Profitability. OLS results indicate that Cash Flow and Size of the firm has significantly negative impact whereas Leverage, Net-Working Capital and Profitability has significantly positive impact on the firm value. Fixed Effect model also ensure and confirmed the results of OLS and Hausman test indicated that the Fixed Effect model is better than Random Effect Model. Keywords: Net-Working Capital, Firm Value, Financial Constraints. Introduction Every organization has changed working capital features. More working capital needs for manufacturing industries because there is a process of converting raw materials into finished goods that requires the flow of funds by the goods are sold to clients or accrual payment. Working capital management connected to cash flow is one of the challenges for industrial businesses. In short, working capital defines the existing position of a business, while cash flow means how a company produces cash over a certain time period.