WORKING CAPITAL MANAGEMENT AND PROFITABILITY OF FIRMS IN NIGERIA
No Thumbnail Available
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Academy of Management Nigeria National Secretariat Faculty of Management Sciences University of Benin, Benin City, Nigeria.
Abstract
Description
This study was conducted in order to ascertain
the nature of the relationship between working
capital management and profitability of firms
in Nigeria. The cluster sampling and simple
random sampling techniques were adopted in
this study. From a population of 220 firms
listed on the Nigerian Stock Exchange as at
3F' December, 2011, a sample of 142
companies was selected. A cross-sectional
data of firms for 2009-2011 was collected
from the Nigerian Stock Exchange Fact Book
and the annual reports of the sampled firms.
The data collected were analysed using
Ordinary Least Squares (OLS) regression
technique. All of the explanatory variable
(LQD, DBT, CCC) except CCC were .
positively associated with profitability of finns
in Nigeria. It was also found out that only
LQD is significantly associated with
profitability. Based on the result of this study
it was recommended amongst others that, the
federal government of Nigeria, through her
relevant agencies, should emphasize
optimization of the liquidity of firms in
Nigeria. This is necessary so as to enhance
profitability of firms doing business in the
Federal Republic of Nigeria.
Keywords
HF5601 Accounting