Working Capital Management and Profitability of Quoted Manufacturing Firms in Nigeria.

Emmanuel Oladipupo 82 PAGES (19769 WORDS) Project
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         ABSTRACT

This study examined the impact of working capital management and profitability of 10 quoted manufacturing companies in Nigeria using a cross-sectional time series data for the period 2010 – 2015. The study used secondary data generated from the published annual reports and account of the sampled companies. Data were analysed using correlation and descriptive statistics using SPSS 20. The study reviewed a positive effect of cash conversion cycle (CCC), receivable collection period (RCP), and a negative effect of inventory conversion period (ICP), payables payment period (PPP), on return on assets (a mirror of firms profitability). It was found that cash conversion cycle (CCC) with a positive sign is the most significant precision variable in influencing profitability and liquidity in Nigeria. The study therefore recommended (i) that the firms should promptly collect cash from credit sales, (ii) that excess cash should be reinvested in short-term securities (assets) to generate profits (iii) that since there exists high sales turnover in the Nigeria emerging markets, government policy should target multinational companies (MNCs) for invitation to participate in investing in Nigeria by creating the right legal and regulatory framework to enable them the market for possible FDI, IPI, and FPI injection into the Nigeria domestic economy.

KEYWORDS: working capital, liquidity, profitability, cash management

TABLE OF CONTENTS
Title page i
Certification ii
Dedication         iii
Acknowledgement.              iv
Abstract          v
Table of Contents  vi
List of Tables  ix
CHAPTER ONE
INTRODUCTION  1
1.1 Background information to the study 1-3
1.2 Statement of the problem                                                   4-5
1.3 Significance/justification of the study                 5-7
1.4 Objectives of Study 7-8
1.5 Scope of the Study       8
1.6 Research Questions  9
1.7 Research Hypotheses  9
1.8 Limitation to the study 10
1.9 Operational Definition of             Terms       10-12
1.10 Case Study/Historical Background       12-14

CHAPTER TWO
LITERATURE REVIEW   15
2.1 Conceptual Framework 15
2.1.1  Concept of Working                       Capital       16-18
2.1.2. Significance Component            of Working Capital                         Management       18-19
2.1.2.1 Inventory.                Management and Profitability       20-22
2.1.2.2 Account Receivables Management and Profitability 22-27
2.1.2.3 Account Payables Management and Profitability 27-29
2.1.2.4 Cash Management    .      and Profitability 29-31
2.1.2.5 Cash Conversion Cycle and Profitability 31-33
2.1.3 Measurement of Working Capital Management         33-35
2.1.4 Working Capital Policy 35-38
2.1.4.1 Investing in Working              Capital 38
2.1.4.2 Short term Financing 39
2.1.5 Concept of            Profitability      39-40
2.1.6 Profitability and Liquidity Measures       40-43
2.1.7 Working Capital Management and Firm Profitability       43-44
2.1.8 Consequences of Poor Working Capital Management                      44-45
2.2 Theoretical Framework      45-46
2.2.1 Risk and Return Tradeoff Theory     46-47
2.2.2 Resource-Based            Theory     47-48
2.3 Empirical Studies      48-51
CHAPTER THREE
3.0 METHODOLOGY 52
3.1 Research Design      52-53
3.2 Population 53
3.3 Sample and sampling            Techniques 53
3.4 Method of Data Collection 54
3.5 Reliability and Validity Tests     54-55
3.6 Method of Data Analysis 55-56
CHAPTER FOUR
4.0 RESULTS AND DISCUSSION 57
4.1 Presentation of Results     58-61
4.2 Discussion of Results     61-63
4.3 Interpretation of Results      63-65
CHAPTER FIVE
5.0 CONCLUSION AND RECOMMENDATIONS 66
5.1 Conclusion 66
5.2 Recommendations. 66-67
References      68-73
Appendices

LIST OF TABLES
Table 1 Descriptive Statistics for the Model 58
Table 2 Correlation Analysis of Model      58-59
Table 3 Regression Model Summary 60
Table 4 ANOVA Test of Analysis of Variance 60
Table 5 Coefficient of Determination 61

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APA

Emmanuel, O (2019). Working Capital Management and Profitability of Quoted Manufacturing Firms in Nigeria.. Afribary.com: Retrieved April 21, 2019, from https://afribary.com/works/working-capital-management-and-profitability-of-quoted-manufacturing-firms-in-nigeria

MLA 8th

Oladipupo, Emmanuel. "Working Capital Management and Profitability of Quoted Manufacturing Firms in Nigeria." Afribary.com. Afribary.com, 11 Apr. 2019, https://afribary.com/works/working-capital-management-and-profitability-of-quoted-manufacturing-firms-in-nigeria . Accessed 21 Apr. 2019.

MLA7

Oladipupo, Emmanuel. "Working Capital Management and Profitability of Quoted Manufacturing Firms in Nigeria.". Afribary.com, Afribary.com, 11 Apr. 2019. Web. 21 Apr. 2019. < https://afribary.com/works/working-capital-management-and-profitability-of-quoted-manufacturing-firms-in-nigeria >.

Chicago

Oladipupo, Emmanuel. "Working Capital Management and Profitability of Quoted Manufacturing Firms in Nigeria." Afribary.com (2019). Accessed April 21, 2019. https://afribary.com/works/working-capital-management-and-profitability-of-quoted-manufacturing-firms-in-nigeria