WORKING CAPITAL MANAGEMENT AND PROFITABILITY OF LISTED CONGLOMERATE FIRMS IN NIGERIA
WORKING CAPITAL MANAGEMENT AND PROFITABILITY OF LISTED CONGLOMERATE FIRMS IN NIGERIA
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Date
2017-03
Authors
LAWAL, MUHAMMAD LUKMAN
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Abstract
Despite efforts being made by relevant stakeholders to improve performance, most firms do not
ensure optimal level of working capital and this has been a major obstacle to their overall
profitability. Efforts were made by this study to examine the impact of working capital
management on the profitability of conglomerate firms listed on the Nigerian Stock Exchange.
Data were collected from the annual reports of the six conglomerate firms listed on the Nigerian
Stock Exchange for a period of 10 years (2006-2015); correlation research design was used,
while ordinary least regression (OLS) was employed in data analysis. Using panel data
methodology, the study found a significant positive relationship between cash conversion
cycle and profitability; an insignificant negative relationship between debtor’s turnover ratio
and profitability; and an insignificant positive relationship between inventory turnover ratio
and profitability. The study suggests that managers of conglomerate firms should give
adequate attention to debtor’s and inventory turnover and try to maintain an optimal working
capital levels.
Description
BEING A DISSERTATION SUBMITTED TO THE SCHOOL OF
POSTGRADUATE STUDIES, AHMADU BELLO UNIVERSITY, ZARIA
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF THE DEGREE OF MASTER OF SCIENCE (M.Sc),
ACCOUNTING AND FINANCE
Keywords
WORKING CAPITAL MANAGEMENT,, PROFITABILITY,, LISTED CONGLOMERATE FIRMS,, NIGERIA