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Working Capital Management And Firms Performance
[A STUDY OF MANUFACTURING COMPANIES IN NIGERIA] -
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This study investigated the relationship between working capital management measured by account receivable period (ACRP), inventory period (INVP), cash conversion cycle (CCC) and sales Growth (SG) and profitability performance measured by returns on assets (ROA). The study utilized secondary data obtained from the annual financial statements of Nigerian Manufacturing companies listed on the Nigerian Stock Exchange (NSE) for period 2008 – 2012. Multiple regression model were adopted for testing all the hypotheses and the study result reveals that there was a negative significant relationship between the account receivable period and profitability of the Nigerian Manufacturing companies.
It also reveals that the profit is significantly influenced by the number of days inventory were held (INVP) and that the profitability performance negatively and significantly related to the cash conversion cycle (CCC). These results suggest that effective policies must be formulated for the individual components of working capital. Furthermore, efficient management and financing of working capital (current assets and liabilities) can increase the operating profitability of manufacturing firms
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CHAPTER ONE - [ Total Page(s): 3 ]REFERENCESAfza, T. and Nazir, M. (2009). “Impact of aggressive working capital management policy on firm’s profitability”. The IUP Journal of Applied Finance, 15 (8), 20 – 30.Akinsulire, O. (2005). Financial management. Lagos: El-Toda Ventures.Deloof, M. (2003). “Does working capital management affect profitability of Belgium firms”? Journal of Business Finance and Accounting, 30 (3), 573-588.Falope, O.I. and Ajilore, O.T. (2009). “Working capital management and corporate profitabi ... Continue reading---
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CHAPTER ONE - [ Total Page(s): 3 ]REFERENCESAfza, T. and Nazir, M. (2009). “Impact of aggressive working capital management policy on firm’s profitability”. The IUP Journal of Applied Finance, 15 (8), 20 – 30.Akinsulire, O. (2005). Financial management. Lagos: El-Toda Ventures.Deloof, M. (2003). “Does working capital management affect profitability of Belgium firms”? Journal of Business Finance and Accounting, 30 (3), 573-588.Falope, O.I. and Ajilore, O.T. (2009). “Working capital management and corporate profitabi ... Continue reading---
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ABSRACT -- [Total Page(s) 1]
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