Empirical Investigation of Effective Management of Working Capital on Firm Performance: Evidence from the Nigerian Agricultural Sector

Peter, Ayunku E.; Johnny, Nelson

doi:10.9734/ajeba/2019/v13i430179

Cited by 4 publications

(3 citation statements)

References 14 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…( 2018) recommended in their study on effects of investment decisions on listed firms at Nairobi Securities Exchange that since investment decisions affect performance positively and significantly there is need for listed firms to focus more investing in firm machinery, property, plants and equipment so as to boost their investment returns. Peter and Nelson(2020),in their study on effect of financial management practices on firm performance in Nigeria revealed that, earnings per share and working capital management signified by account receivables is found to have positive and statistically significant effect. The relation between earnings per share and account payables is established to be negative and statistically insignificant for the Nigerian companies under study.…”

Section: Empirical Studiesmentioning

confidence: 95%

Influence of Liquidity Management on Financial Performance of Agricultural Firms Listed in Nairobi Securities

GERIO,

NDIRANGU (Ph.D)

2020

strategicjournals.com

View full text Add to dashboard Cite

The objective of this study was to determine the influence of liquidity management on the financial performance of agricultural firms listed on Nairobi Securities Exchange. A descriptive survey research design was applied. A Census of all the 6 companies listed at Nairobi Securities Exchange as at July 2014 to July 2019 constituted the study population. The study employed secondary data extracted from audited financial statements and individual companies annual report for the five year period covering July 2014 to July 2019. Record survey sheet was used when collecting data for independent and dependent variables. Data collected was analyzed by using descriptive and inferential statistics. Under descriptive statistics the study considered; Mean, Minimum, Maximum and Standard deviation. For inferential statistics the study considered correlation and multiple regression. Statistical Package of Social Science (SPSS) software program was applied in the analysis of the study with respect to the objectives of the study. The study found out that liquidity management has a positive significant effect on financial performance. The liquidity management has positive relationship with the Return on Investment (ROA)of the firms under study. The study recommended that agricultural firms listed on NSE should adopt prudent liquidity management as it influence financial performance.

show abstract

Section: Empirical Studiesmentioning

confidence: 95%

Influence of Liquidity Management on Financial Performance of Agricultural Firms Listed in Nairobi Securities

GERIO,

NDIRANGU (Ph.D)

2020

strategicjournals.com

View full text Add to dashboard Cite

show abstract

“…On the other hand, there are a cup full of local researches that have tilted towards the direction of the present study. Such studies conducted in Nigeria include; Olaoye, Adekanbi & Oluwadare (2019) and Peter & Nelson (2019) concluded that a positive relationship existed between working capital management and firm performance. In contrast, Osuma, Ailemen, Osabohien & Eriki (2017) reported a negative relationship and Oladimeji & Aladejebi (2020) reported that there was no relationship between working capital management and SMEs' profitability in Nigeria.…”

Section: Statement Of the Problemmentioning

confidence: 99%

Working Capital Management on Economic Growth and Development: Emphasis From Listed Conglomerates Firms in Nigeria

Egolum¹,

Uchenna²,

Nympha³

et al. 2023

IJRCMS

View full text Add to dashboard Cite

The study investigates the effect of working capital management on economic growth and development, with emphasis from listed conglomerates firms in Nigeria. Four objectives were employed with coverage of a ten-year period spanning from 2011 to 2020. Secondary data were used in the study with total population based on five (5) conglomerate firms listed on Nigerian Stock Exchange. The tests of the four null hypotheses were carried out using spearman rank correlation analysis and also employed panel least square (POLS) regression analysis. The result of the analyses revealed the following: Cash conversion cycle (Random effect = -0.03 (0.002)) has a negative significant influence on firm profitability. Inventory period (Random effect = 0.02 (0.262) has a positive insignificant influence on firm profitability. Current ratio (Random effect = 15.55 (0.002) also has positive but significant influence on firm profitability. Quick ratio (Random effect = -12.45 (0.035) has a negative significant influence on firm profitability. The study concludes that cash conversion cycle and quick ratio tend to decrease firm profitability while we provide evidence that current ratio improves firm profitability. The study recommends, among others, that Management of these conglomerates companies should advocate for policies that will enhance swift conversion of inventory to cash to improve firm profitability for economic growth and development in Nigeria.

show abstract

“…Usually, financial managers have to make a crucial financial decision to determine the company's value. However, firm performance measures companies' earnings, profits, and appreciation in share value arising from efficient and effective positioning of the organization's resources (Peter & Nelson, 2020) [43] . Firm performance is one of the driving forces of growth and development of any economic activities in the world.…”

Section: Introductionmentioning

confidence: 99%

The moderating effect of cost of capital on working capital management and firm's performance in Nigeria

Mas’ud¹,

Abdul-Hamid²,

Nassir³

2022

Int. J. Finance Manage. Econ.

View full text Add to dashboard Cite

The direct effect of working capital management and its components (accounts receivable period, accounts payable period and inventory holding period on firm's performance has been examined in the previous literature, which discovered that there is a severe dearth of literature on WCM and firm's performance especially in Nigeria. The underlying components that influence the performance have not been comprehensively explored in Nigeria. Therefore, the main objectives is to examine the effect of working capital management and its components on firm's performance. Another objective, this study introduced cost of capital as a moderating variable to investigate the moderating (interaction) effects on the relationship between each component of the WCM and firm performance. To achieve these objectives, the study obtained panel data of 75 listed firms on the Nigerian Stock Exchange, the data for the Study is based on the annual financial reports of 145 firms derive from the quoted companies on the Nigerian Stock Exchange for the period between 2011 to 2020. These objectives were met by the use of a panel data methodology on a series of interactive models. Furthermore, the study test the fixedeffect model and random effect model. Finally, the study has implications on both theoretical and managerial perspectives.

show abstract

Empirical Investigation of Effective Management of Working Capital on Firm Performance: Evidence from the Nigerian Agricultural Sector

Cited by 4 publications

References 14 publications

Influence of Liquidity Management on Financial Performance of Agricultural Firms Listed in Nairobi Securities

Influence of Liquidity Management on Financial Performance of Agricultural Firms Listed in Nairobi Securities

Working Capital Management on Economic Growth and Development: Emphasis From Listed Conglomerates Firms in Nigeria

The moderating effect of cost of capital on working capital management and firm's performance in Nigeria

Contact Info

Product

Resources

About