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The Relationship Between Working Capital Management and Profitablity of Listed Manufacturing Companies in Ghana

Author

Listed:
  • Agyemang Badu Ebenezer

    (Lecturer, Department of Business Administration,Presbyterian University College, Ghana)

  • Michael Kwame Asiedu

    (Lecturer, Department of Business Administration,Presbyterian University College, Ghana)

Abstract

This study examines the effect of working capital management on the profitability of companies listed on the Ghana Stock Exchange. Secondary data from the Ghana Stock Exchange on manufacturing companies within the Accra metropolis was used to examine whether working capital management influence the profitability of manufacturing companies in the country. The study found out that, the major component of working capital management such as inventory days, account payable and cash conversion cycle have influence on the profitability of manufacturing companies. The study recommended that, manufacturing companies should adopt efficient and effective ways of efficiently managing these components of working capital management.

Suggested Citation

  • Agyemang Badu Ebenezer & Michael Kwame Asiedu, 2013. "The Relationship Between Working Capital Management and Profitablity of Listed Manufacturing Companies in Ghana," International Journal of Business and Social Research, LAR Center Press, vol. 3(2), pages 25-34, February.
    • Handle: RePEc:lrc:larijb:v:3:y:2013:i:2:p:25-34
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    File URL: http://thejournalofbusiness.org/index.php/site/article/view/71/70
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    References listed on IDEAS

    as
    1. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3‐4), pages 573-588, April.
    2. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3-4), pages 573-588.
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    Cited by:

    1. Abidin Djafar & Lebba Kadorre Pongsibanne, 2018. "Analysis of Business Revenue Residual Sharing System in Cooperatives in Indonesia on Islamic Law Review: A case study at KSU Mitra Bersama in Palu City," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 8(2), pages 1-9, February.
    2. Abidin Djafar & Lebba Kadorre Pongsibanne, 2018. "Analysis of Business Revenue Residual Sharing System in Cooperatives in Indonesia on Islamic Law Review: A case study at KSU Mitra Bersama in Palu City," International Journal of Business and Social Research, LAR Center Press, vol. 8(2), pages 1-9, February.
    3. Anokye M. ADAM & Edward QUANSAH & Seyram KAWOR, 2017. "Working Capital Management Policies And Returns Of Listed Manufacturing Firms In Ghana," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 64(2), pages 255-269, June.

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