WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRM IN SOUTHEAST NIGERIA

Nwachukwu, Basilia Chiamaka; Inyiama, Oliver Ikechukwu

doi:10.5281/zenodo.8072972

WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRM IN SOUTHEAST NIGERIA

Authors: Nwachukwu, Basilia Chiamaka, Inyiama, Oliver Ikechukwu

Journal: International Journal of Advanced Finance and Accounting (IJAFA), ISSN 2765-8457

Citation: IJAFA 4(2), 2023-06-22.

DOI: 10.5281/zenodo.8072972

PDF: Download full-text PDF

Type: Original Research

Abstract

The study examined the effect of working capital management and financial performance of manufacturing Firm in Southeast Nigeria. The study adopts short term investments and account payables as the independent variable while turnover serve as dependent variable. The study used an ex-post facto research approach as its methodology. Secondary source of data was adopted for the study. The data was obtained from audited annual financial account and reporting of the manufacturing firm listed in the Nigeria Stock Exchange LTD. The data were analysed using Pearson's correlation coefficient. Short-term investment has a weak (28%) positive relationship with financial performance (proxied by turnover). While Account Payables have a moderately strong (58%) positive relationship with financial performance (proxied by turnover) of quoted industrial goods firms in Nigeria. We concluded that working capital management has significant positive effect on the financial performance of manufacturing firm in Southeast Nigeria. We recommended that, the manufacturing firm in sought east Nigeria should endeavour to effectively manage their working capital very well since it has significant positive effect on the financial performance of the firm.

Keywords

Working Capital Management, Financial Performance, Manufacturing Firm BY Nwachukwu

Full Text

Published by Academic Ink Review Journal. Open Access under CC BY 4.0.