IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v11y2019i2p27-34.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/2880/1866
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/2880
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v11i2(I).2880?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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.
    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. Mai, Nhat Chi, 2022. "Capital Raising and Management of Vietnamese Small and Medium Sized Enterprises after Integrating into Global Economy," OSF Preprints dv68m, Center for Open Science.
    2. Duo Xu & Christopher Gan & Zhaohua Li & Pengcheng Wang, 2021. "Earnings, Working Capital and Dividend Payout: Evidence from the London Stock Exchange," Annals of Economics and Finance, Society for AEF, vol. 22(2), pages 421-449, November.
    3. Nida Shah, 2016. "The Impact of Working Capital Management on Firms Profitability in Different Business Cycles: Evidence from Pakistan," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 1(1), pages 58-70, March.
    4. Tarkom, Augustine & Ujah, Nacasius U., 2023. "Global policy uncertainty and working capital management: Does national culture matter?," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    5. Grzegorz Zimon, 2020. "Financial Liquidity Management Strategies in Polish Energy Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 365-368.
    6. Abudu Braimah & Yinping Mu & Isaac Quaye & Alhassan Abubakar Ibrahim, 2021. "Working Capital Management and SMEs Profitability in Emerging Economies: The Ghanaian Case," SAGE Open, , vol. 11(1), pages 21582440219, February.
    7. Ajaya Kumar Panda & Swagatika Nanda & Pradiptarathi Panda, 2021. "Working Capital Management, Macroeconomic Impacts, and Firm Profitability: Evidence from Indian SMEs," Business Perspectives and Research, , vol. 9(1), pages 144-158, January.
    8. Ahmed Mohamed Habib & Nahia Mourad, 2022. "Analyzing the Efficiency of Working Capital Management: a New Approach Based on DEA-Malmquist Technology," SN Operations Research Forum, Springer, vol. 3(3), pages 1-20, September.
    9. Tarek Ibrahim Eldomiaty & Mohamed Hashem Rashwan & Mohamed Bahaa El Din & Waleed Tayel, 2016. "Firm, industry and economic determinants of working capital at risk," International Journal of Financial Engineering (IJFE), World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 1-29, December.
    10. Tiago Gonçalves & Cristina Gaio & Frederico Robles, 2018. "The impact of Working Capital Management on firm profitability in different economic cycles: Evidence from the United Kingdom," Economics and Business Letters, Oviedo University Press, vol. 7(2), pages 70-75.
    11. Sameh Ammar & Ghassan H. Mardini, 2021. "Enterprise resource planning enabling segmental information reporting practices of UK‐FTSE 100," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(1), pages 1205-1237, March.
    12. 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.
    13. Olaoye & Clement Olatunji & Adeboboye & Roseline, 2019. "Working Capital Management and Performance of Industrial and Consumer Goods Firms in Nigeria: A Comparative Analysis," Information Management and Business Review, AMH International, vol. 11(3), pages 35-45.
    14. Dapeng Yang & Daqing Wu & Luyan Shi, 2019. "Distribution-Free Stochastic Closed-Loop Supply Chain Design Problem with Financial Management," Sustainability, MDPI, vol. 11(5), pages 1-23, February.
    15. Hakim Lyngstadaas, 2020. "Packages or systems? Working capital management and financial performance among listed U.S. manufacturing firms," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(4), pages 403-450, December.
    16. Muhammad Azeem Naz & Rizwan Ali & Ramiz Ur Rehman & Collins G. Ntim, 2022. "Corporate governance, working capital management, and firm performance: Some new insights from agency theory," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1448-1461, July.
    17. Sorin Gabriel Anton & Anca Elena Afloarei Nucu, 2020. "The Impact of Working Capital Management on Firm Profitability: Empirical Evidence from the Polish Listed Firms," JRFM, MDPI, vol. 14(1), pages 1-14, December.
    18. Leiv Opstad & Johannes Idsø & Robin Valenta, 2022. "The Dynamics of the Profitability and Growth of Restaurants; The Case of Norway," Economies, MDPI, vol. 10(2), pages 1-12, February.
    19. Amanj Mohamed Ahmed & Nabard Abdallah Sharif & Muhammad Nawzad Ali & István Hágen, 2023. "Effect of Firm Size on the Association between Capital Structure and Profitability," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    20. Adalberto Ospino Castro & Carlos Robles-Algar n & Rafael Pe a Gallardo, 2019. "Analysis of Energy Management and Financial Planning in the Implementation of PV Systems," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 1-11.

    More about this item

    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:rnd:arimbr:v:11:y:2019:i:2:p:27-34. 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: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    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.