Ogunlade, Tayon Stephen and Covenant University, Theses (2021) EFFECT OF WORKING CAPITAL MANAGEMENT ON PERFORMANCE OF NON-LISTED FINANCIAL CONSUMER GOODS FIRMS IN NIGERIA. Masters thesis, Covenant University Ota..
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Abstract
The aim of this study was to assess the impact of working capital management on financial performance of listed consumer goods firms in Nigeria. To know whether working capital variables like cash conversion cycle CCC, account receivables period ARP, account payables period APP, and inventory turnover period ITP had a substantial impact on the financial performance of publicly traded consumer goods firms in Nigeria. Resources based and contingency theories were adopted. The study population was from 2003 to 2020. The study's hypotheses were tested using regression. The null hypothesis that ARP has no statistically significant influence on consumer goods firm profitability is also accepted at the 5% level; the CCC has a positive effect on consumer goods firm profitability. The null hypothesis that inflation has no statistically significant effect on consumer goods firm profitability is accepted since an increase in the CCC increases consumer goods firm profitability by 1.22 percent. The null hypothesis that interest rates have no statistically significant effect on non-financial firm profitability is accepted, because cash flow was very constrained throughout the recession period. A positive coefficient and statistically significant effect on firm performance were identified by the results. The CCC, ARP, and ROCE of consumer goods firms had no effect on the firm performance during the covid-19 pandemic. ARP, CCC, and APP can influence the success of consumer goods firms according to the findings. majority of explanatory variables had little effect on the firms' performance throughout these periods, demonstrating the necessity of being prepared for unexpected conditions, annual performance reviews are required to assess a firm’s progress, difficulties, and solutions. The study's conclusion on consumer goods financial performance during both the recession and the covid-19 period was that accounting books should be treated separately from performance reviews. Accounting records must be kept carefully for Inventory turnover, accounts receivable and payable as well as cash conversion. These data can help organizations plan for unexpected situations and make informed financial decisions
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | The aim of this study was to assess the impact of working capital management on financial performance of listed consumer goods firms in Nigeria. To know whether working capital variables like cash conversion cycle CCC, account receivables period ARP, account payables period APP, and inventory turnover period ITP had a substantial impact on the financial performance of publicly traded consumer goods firms in Nigeria. Resources based and contingency theories were adopted. The study population was from 2003 to 2020. The study's hypotheses were tested using regression. The null hypothesis that ARP has no statistically significant influence on consumer goods firm profitability is also accepted at the 5% level; the CCC has a positive effect on consumer goods firm profitability. The null hypothesis that inflation has no statistically significant effect on consumer goods firm profitability is accepted since an increase in the CCC increases consumer goods firm profitability by 1.22 percent. The null hypothesis that interest rates have no statistically significant effect on non-financial firm profitability is accepted, because cash flow was very constrained throughout the recession period. A positive coefficient and statistically significant effect on firm performance were identified by the results. The CCC, ARP, and ROCE of consumer goods firms had no effect on the firm performance during the covid-19 pandemic. ARP, CCC, and APP can influence the success of consumer goods firms according to the findings. majority of explanatory variables had little effect on the firms' performance throughout these periods, demonstrating the necessity of being prepared for unexpected conditions, annual performance reviews are required to assess a firm’s progress, difficulties, and solutions. The study's conclusion on consumer goods financial performance during both the recession and the covid-19 period was that accounting books should be treated separately from performance reviews. Accounting records must be kept carefully for Inventory turnover, accounts receivable and payable as well as cash conversion. These data can help organizations plan for unexpected situations and make informed financial decisions |
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Mrs Patricia Nwokealisi |
| Date Deposited: | 03 Nov 2021 12:44 |
| Last Modified: | 03 Nov 2021 12:44 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/15436 |
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