Record Details

The Effect of Working Capital Management on Corporate Profitability: Evidence from Nigerian Food Product Firms

Applied Finance and Accounting

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Field Value
 
Title The Effect of Working Capital Management on Corporate Profitability: Evidence from Nigerian Food Product Firms
 
Creator Muhammad, Sabo
Saminu Jibril, Rabi’U
Wambai, Usman Sani K.
Ibrahim, Fatima Bello
Ahmad, Tjjani Habibu
 
Description The paper examines the impact of working capital management on corporate profitability through the periods of 2008 to 2012. The total of seven firms listed on the floor of the Nigerian Stock Exchange was studied, using secondary data generated from annual reports and accounts of the sampled companies and the Nigerian Stock Exchange Fact book. The data were analyzed by means of descriptive statistics and GLS regression analysis using STATA 11. The study finds a positive relationship among Average Collection Period (ACP), Current Ratio (CR) and the size of the firm (LOGSIZE) with Profitability and a negative relationship with Inventory Turnover Period (ITP), Average Payment Period (APP). The paper therefore recommends that cash collected should be re-invested into short-term investment to generate profits and fund left idle in the cash or excessive liquidity is costly and do not lead to profitability.
 
Publisher Redfame publishing
 
Contributor —
 
Date 2015-05-26
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://redfame.com/journal/index.php/afa/article/view/842
10.11114/afa.v1i2.842
 
Source Applied Finance and Accounting; Vol 1, No 2 (2015); 55-63
2374-2429
2374-2410
 
Language eng
 
Relation http://redfame.com/journal/index.php/afa/article/view/842/2840