IDEAS home Printed from https://ideas.repec.org/a/rfa/afajnl/v5y2019i2p20-25.html
   My bibliography  Save this article

The Relationship between Working Capital Management and Financial Sustainability of Selected Christian Denominations in Ghana

Author

Listed:
  • Williams Kwasi Peprah
  • Isaac Anowuo
  • Daniel Adofo Kwakye Ameyaw

Abstract

Management of working capital is a fundamental aspect of finance. This is because it affects the church's liquidity and financial sustainability. The study sort of establishing the relationship between working capital and financial sustainability for selected Christian denominations in Ghana. Using bivariate correlation application in SPSS 23, the financial statements from 2013 to 2017 of 15 Christian Council of Ghana denominational members conveniently sampled and analyzed. Working capital is represented by liquidity ratios of current ratio, and cash ratio and financial sustainability are epitomized by self-support. The study revealed that there was a positive relationship between working capital and financial sustainability among Christian denomination in Ghana. In a detailed outcome, there was a statistically small positive significant relationship between self-support and cash ratio and statistically large positive significant relationship between self-support and current ratio. The study recommends to churches in Ghana to seek an enhancing relationship between their working capital and financial sustainability to prevent a possible closure of the church. Not-for-profit organizations must seek self-support through income generation and diversification to improve their Liquidity. Again, not-for-profit organizations must have a positive relationship between working capital and financial sustainability in that churches exist because of liquidity.

Suggested Citation

  • Williams Kwasi Peprah & Isaac Anowuo & Daniel Adofo Kwakye Ameyaw, 2019. "The Relationship between Working Capital Management and Financial Sustainability of Selected Christian Denominations in Ghana," Applied Finance and Accounting, Redfame publishing, vol. 5(2), pages 20-25, August.
    • Handle: RePEc:rfa:afajnl:v:5:y:2019:i:2:p:20-25
    as

    Download full text from publisher

    File URL: http://redfame.com/journal/index.php/afa/article/view/4410/4595
    Download Restriction: no
    File URL: http://redfame.com/journal/index.php/afa/article/view/4410
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chux Gervase Iwu & Lloyd Kapondoro & Michael Twum-Darko & Robertson Tengeh, 2015. "Determinants of Sustainability and Organisational Effectiveness in Non-Profit Organisations," Sustainability, MDPI, vol. 7(7), pages 1-14, July.
    2. Kwadwo Boateng Prempeh Godfred Peprah-Amankona, 2020. "Does Working Capital Management Affect Profitability of Ghanaian Manufacturing Firms?," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 23(1), pages 1-18, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Urquía-Grande, Elena & Estébanez, Raquel Pérez & Alcaraz-Quiles, Francisco José, 2022. "Impact of Non-Profit Organizations’ Accountability: Empirical evidence from the democratic Republic of Congo," World Development Perspectives, Elsevier, vol. 28(C).
    2. Sebastian-Ion Ceptureanu & Eduard-Gabriel Ceptureanu & Mihai Cristian Orzan & Irinel Marin, 2017. "Toward a Romanian NPOs Sustainability Model: Determinants of Sustainability," Sustainability, MDPI, vol. 9(6), pages 1-26, June.
    3. Sebastian Ion Ceptureanu & Eduard Gabriel Ceptureanu & Vlad Liviu Bogdan & Violeta Radulescu, 2018. "Sustainability Perceptions in Romanian Non-Profit Organizations: An Exploratory Study Using Success Factor Analysis," Sustainability, MDPI, vol. 10(2), pages 1-23, January.
    4. Eun-Jung Shin & Hyoung-Goo Kang & Kyounghun Bae, 2020. "A Study on the Sustainable Development of NPOs with Blockchain Technology," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    5. Bilal Asghar & Ahmad Wasim & Usama Qazi & Azfar Rasool, 2020. "Financial and Non-Financial Practices Driving Sustainable Firm Performance: Evidence from Banking Sector of Developing Countries," Sustainability, MDPI, vol. 12(15), pages 1-15, July.
    6. Deari Fitim & Palomba Giulio, 2024. "Does the Cash Conversion Cycle Affect Firm Profitability? Some Empirical Evidence from Listed Firms in North Macedonia," Zagreb International Review of Economics and Business, Sciendo, vol. 27(1), pages 63-77.
    7. Siphokazi NONYUSA & Robertson Khan TENGEH & Gervase Chux IWU & Darlington ONOJAEFE, 2022. "App-Based Ride Services And The Sustainability Of Metered Taxis In South Africa," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(3), pages 13-29, September.
    8. Grzegorz Zimon & Hossein Tarighi, 2021. "Effects of the COVID-19 Global Crisis on the Working Capital Management Policy: Evidence from Poland," JRFM, MDPI, vol. 14(4), pages 1-17, April.
    9. Grzegorz Zimon & Hossein Tarighi & Mahdi Salehi & Adam Sadowski, 2022. "Assessment of Financial Security of SMEs Operating in the Renewable Energy Industry during COVID-19 Pandemic," Energies, MDPI, vol. 15(24), pages 1-18, December.
    10. Ardi Ahmeti & Alban Elshani, 2024. "The Effect of Profitability as a Mediator in the Relationship between Working Capital Management and the Sustainable Growth of Small and Medium-Sized Enterprises in Selected Western Balkan Countries," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 47-61.

    More about this item

    Keywords

    working capital; financial sustainability; liquidity ratio; current ratio; cash ratio; self-support;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfa:afajnl:v:5:y:2019:i:2:p:20-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Redfame publishing (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.