IDEAS home Printed from https://ideas.repec.org/a/jfr/ijfr11/v11y2020i2p287-292.html
   My bibliography  Save this article

The Effect of Inventory Turnover Period on the Profitability of Listed Nigerian Conglomerate Companies

Author

Listed:
  • Sunusi Garba
  • Boudiab Mourad
  • Muhammad Adamu Chamo

Abstract

This study analyses the association concerning inventory turnover management and Nigerian conglomerate firms¡¯ profitability. The study is used a historical panel data analysis. Data were generated from the yearly accounts of listed firms from 2007 to 2016. The population of the study consists of six conglomerate firms registered on the Nigerian Stock Exchange. Feasible generalized least square (FGLS) regression was utilized as tools of analysis in the study. The findings establish that inventory turnover management affects Nigerian conglomerate companies¡¯ profitability inversely associated to the profitability of the listed conglomerate firms in Nigeria. The study suggests that there must be regular stock-taking to determine eventually, the slothful stocks to dodge over venture in such stocks (if any). Furthermore, if there is no high demand for the goods the inventory needs to be reduce that are obsolescence. Management should also implement an extraordinary inventory management measures.

Suggested Citation

  • Sunusi Garba & Boudiab Mourad & Muhammad Adamu Chamo, 2020. "The Effect of Inventory Turnover Period on the Profitability of Listed Nigerian Conglomerate Companies," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 287-292, April.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:2:p:287-292
    DOI: 10.5430/ijfr.v11n2p287
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/17450/10814
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/17450
    Download Restriction: no
    File URL: https://libkey.io/10.5430/ijfr.v11n2p287?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. Daniel Hoechle, 2007. "Robust standard errors for panel regressions with cross-sectional dependence," Stata Journal, StataCorp LP, vol. 7(3), pages 281-312, September.
    2. Ha Thi Thuy Van & Dang Ngoc Hung & Vu Thi Thuy Van & Ngo Thanh Xuan, 2019. "Managing Optimal Working Capital and Corporate Performance: Evidence from Vietnam," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(9), pages 977-993, September.
    3. Ha Thi Thuy Van & Dang Ngoc Hung & Vu Thi Thuy Van & Ngo Thanh Xuan, 2019. "Managing Optimal Working Capital and Corporate Performance: Evidence from Vietnam," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(9), pages 977-993.
    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. Nguyen Thi Thanh Phuong & Dang Ngoc Hung, 2020. "Board of Directors and Financial Reporting Quality in Vietnam Listed Companies," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 296-305, July.
    2. Vo Thi Van Khanh & Dang Ngoc Hung, 2020. "Impact of Earnings Quality on the Debt Maturity: The Case of Vietnam," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(1), pages 1-12, January.
    3. Martha Coleman & Mengyun Wu, 2020. "Combination of Ant Colony Optimization and K-nearest Neighbours: The Influence of Working Capital Management on Corporate Performance," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(4), pages 395-415, November.
    4. Ayhan, Fatih & Elal, Onuray, 2023. "The IMPACTS of technological change on employment: Evidence from OECD countries with panel data analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    5. Chimere O. Iheonu, 2019. "Governance and Domestic Investment in Africa," Working Papers 19/001, European Xtramile Centre of African Studies (EXCAS).
    6. Shi, Ruoding & Isengildina Massa, Olga, 2018. "Double-Edged Sword: Liquidity Implications of Futures Hedging," 2018 Annual Meeting, August 5-7, Washington, D.C. 274106, Agricultural and Applied Economics Association.
    7. Raffaella Santolini, 2017. "Electoral Rules And Public Spending Composition: The Case Of Italian Regions," Contemporary Economic Policy, Western Economic Association International, vol. 35(3), pages 551-577, July.
    8. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    9. Martina Vukašina & Ines Kersan-Škabiæ & Edvard Orliæ, 2022. "Impact of European structural and investment funds absorption on the regional development in the EU–12 (new member states)," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(4), pages 857-880, December.
    10. Ding, Mingfa, 2014. "Political Connections and Stock Liquidity: Political Network, Hierarchy and Intervention," Knut Wicksell Working Paper Series 2014/7, Lund University, Knut Wicksell Centre for Financial Studies.
    11. Younes Gholizadeh, 2020. "Causality Relationship between Energy Consumption and Economic Growth in the European Union Countries," EERI Research Paper Series EERI RP 2020/12, Economics and Econometrics Research Institute (EERI), Brussels.
    12. Skare, Marinko & Gavurova, Beata & Sinkovic, Dean, 2023. "Regional aspects of financial development and renewable energy: A cross-sectional study in 214 countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1142-1157.
    13. Pablo Quinonez & Joselin Saenz & Jessica Solorzano, 2018. "Does foreign direct investment reduce poverty? The case of Latin America in the twenty-first century," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(3), pages 488-500, June.
    14. Damodar Nepram, 2018. "Does VAT Necessarily Lead to Bigger Government Size? The Experience of States in India," South Asian Journal of Macroeconomics and Public Finance, , vol. 7(2), pages 240-259, December.
    15. Anderton Charles H. & Anderton Roxane A., 2021. "The Trade Disruption Hypothesis Fails for State-Sponsored Genocides and Mass Atrocities: Why It Matters," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 27(2), pages 143-168, May.
    16. Diego Amaya & Jean-François Bégin & Geneviève Gauthier, 2022. "The Informational Content of High-Frequency Option Prices," Management Science, INFORMS, vol. 68(3), pages 2166-2201, March.
    17. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "Multilateral resistance to migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 79-100.
    18. Indra de Soysa, 2022. "Economic freedom vs. egalitarianism: An empirical test of weak & strong sustainability, 1970–2017," Kyklos, Wiley Blackwell, vol. 75(2), pages 236-268, May.
    19. Wataru Miyamoto & Thuy Lan Nguyen & Dmitriy Sergeyev, 2018. "Government Spending Multipliers under the Zero Lower Bound: Evidence from Japan," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 247-277, July.
    20. Liu, Lily Y. & Patton, Andrew J. & Sheppard, Kevin, 2015. "Does anything beat 5-minute RV? A comparison of realized measures across multiple asset classes," Journal of Econometrics, Elsevier, vol. 187(1), pages 293-311.

    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:jfr:ijfr11:v:11:y:2020:i:2:p:287-292. 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: Gina Perry (email available below). General contact details of provider: http://ijfr.sciedupress.com .

    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.