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Assessing Working Capital Management and Performance of Listed Manufacturing Firms: Nigeria Evidence

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  • Akinleye G. T
  • ADEBOBOYE Roseline

Abstract

This study assessed working capital management and performance of listed manufacturing firms in Nigeria 20 firms were sampled, over 10 years. The study employed static data analyses and panel Granger causality test. Result showed that average collection period exerts insignificant negative effect on return on capital employed of the sampled firms, while average collection period also exerts insignificant negative effect on earnings per share of the sampled firms. The result further showed that, average payment period exerts insignificant positive effect on return on capital employed of the sampled firms, but average payment period exerts insignificant negative effect on earnings per share of the sampled firms. The study concluded that, average collection period and average payment exert insignificant effect on return on capital employed of listed manufacturing firms in Nigeria, also; average collection period and average payment period exert insignificant effect on earnings per share of listed manufacturing firms in Nigeria. Hence manufacturing firms in Nigeria should objectively manage average collection period and also maintain a consistent improvement in return on capital employed and earnings per share of listed manufacturing firms in Nigeria.

Suggested Citation

  • Akinleye G. T & ADEBOBOYE Roseline, 2019. "Assessing Working Capital Management and Performance of Listed Manufacturing Firms: Nigeria Evidence," Information Management and Business Review, AMH International, vol. 11(2), pages 27-34.
    • Handle: RePEc:rnd:arimbr:v:11:y:2019:i:2:p:27-34
    DOI: 10.22610/imbr.v11i2(I).2880
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    1. Mehdi Rezaie Ahmadabadi & Esmaeil Mehrabi & Ali Fazel Yazdi, 2013. "Impact of Working Capital Management on the Performance of the Firms Listed on the Tehran Stock Exchange," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(3), pages 352-364, July.
    2. Enqvist, Julius & Graham, Michael & Nikkinen, Jussi, 2014. "The impact of working capital management on firm profitability in different business cycles: Evidence from Finland," Research in International Business and Finance, Elsevier, vol. 32(C), pages 36-49.
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