Adewolu, Michael Abidemi and Covenant University, Theses (2022) IMPACT OF WORKING CAPITAL MANAGEMENT ON PERFORMANCE OF OIL AND GAS FIRMS IN NIGERIA. Masters thesis, Covenant University Ota.
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Abstract
In most organizations engaged in activities requiring primary and secondary production, the process of managing their working capital components has an impact on their financial performance. As a consequence of its contribution to Nigeria's export earnings, firms in the Nigerian oil and gas industry must have a well-established procedure for managing their working capital to guarantee ongoing company operations and enhanced financial performance. Using Return on Asset, Return on Equity, and Tobin-Q as performance metrics and the current ratio, Cash conversion period, trade payable period, and trade receivable period as independent variables, this study examined the effect of working capital on the financial performance of eleven publicly traded oil and gas firms between 2012 and 2021. The research included conceptual, theoretical, and methodological evaluations. The panel data regression analysis with fixed and random effect estimation informed by the Hausman test was then performed on each model specifications, and the results indicated that the current ratio, Cash conversion period, and trade receivable period have a positive impact on the performance of the oil and gas firms, whereas the trade payable period has a negative impact on the financial performance of the oil and gas firms. Therefore, the research suggests a decrease in business debt, a shorter Cash conversion period, and a shorter term for collecting trade receivables. In addition, it is vital to analyse how the working capital component influences the financial performance of upstream oil and gas enterprises and to evaluate the economic crises era of Oil Price over a longer length of time.
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Working capital, Performance, Tobin-Q, Return on Asset, Return on Equity |
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HF Commerce H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | nwokealisi |
| Date Deposited: | 02 Sep 2022 12:36 |
| Last Modified: | 02 Sep 2022 12:36 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/16151 |
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