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Effect of Working Capital Management on Profitability: A Case of Listed Manufacturing Firms in Nigeria

Author

Listed:
  • Dr. Samuel Adebayo OLAOYE

    (Department of Accounting, Babcock University, Ilishan-Remo, Ogun-State, Nigeria)

  • Dr. Abolade Francis AKINTOLA

    (Department of Banking and Finance, Babcock University, Ilishan-Remo, Ogun-State, Nigeria)

  • Adeyemi Samson OGUNDIPE

    (Department of Banking and Finance, Babcock University, Ilishan-Remo, Ogun-State, Nigeria)

Abstract

The purpose of this study was to determine the impact of working capital management on profitability of selected quoted Nigeria manufacturing companies from 2006-2015. Secondary data was obtained to investigate relationship between working capital management and profitability. Panel data methodology similar to Sharma and Kumar (2011) was employed in this study. The results showed positive significant relationship between working capital management and profitability. This means that efficient management of working capital will increase profitability.

Suggested Citation

  • Dr. Samuel Adebayo OLAOYE & Dr. Abolade Francis AKINTOLA & Adeyemi Samson OGUNDIPE, 2019. "Effect of Working Capital Management on Profitability: A Case of Listed Manufacturing Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 3(11), pages 230-238, November.
    • Handle: RePEc:bcp:journl:v:3:y:2019:i:11:p:230-238
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    References listed on IDEAS

    as
    1. Sebastian Ofumbia Uremadu & Rapuluchukwu Uchenna Efobi, 2012. "The Impact of Capital Structure and Liquidity on Corporate Returns in Nigeria: Evidence from Manufacturing Firms," 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. 2(3), pages 1-16, July.
    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.
    3. A.K. Sharma & Satish Kumar, 2011. "Effect of Working Capital Management on Firm Profitability," Global Business Review, International Management Institute, vol. 12(1), pages 159-173, February.
    4. 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.
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