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The relationship between working capital management and corporate returns of cement industry of emerging market

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  • E. Chuke Nwude
  • Patricia Ukachi Allison
  • Comfort Amaka Nwude

Abstract

This study examines the influence of working capital cycles on financial performance of cement industry of Nigeria with a sample of all the listed cement companies in the Nigerian Stock Exchange for the period 2007 to 2018. Correlation and regression analysis were used tools of analysis. Financial performance was proxy by return on assets and return on equity. The study show that a shorter inventory conversion period, account payable period and a longer account collection period enhances the return on asset while a shorter inventory conversion, account collection and account payable periods enhances the return on equity.

Suggested Citation

  • E. Chuke Nwude & Patricia Ukachi Allison & Comfort Amaka Nwude, 2021. "The relationship between working capital management and corporate returns of cement industry of emerging market," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 3222-3235, July.
    • Handle: RePEc:wly:ijfiec:v:26:y:2021:i:3:p:3222-3235
    DOI: 10.1002/ijfe.1959
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    References listed on IDEAS

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    1. 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.
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    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.
    5. Maury, Benjamin, 2006. "Family ownership and firm performance: Empirical evidence from Western European corporations," Journal of Corporate Finance, Elsevier, vol. 12(2), pages 321-341, January.
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