EXAMINING THE IMPACT OF WORKING CAPITAL MANAGEMENT ON THE FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS ENTITIES IN NIGERIA
Keywords:Inventory turnover, Receivable collection, Working capital, Operating cycle, Return on equity
The main objective of this study is to examine the influence of working capital management on the financial performance of listed industrial goods firms/entities in Nigeria. The study collected data from the yearly reports of selected companies between 2011 and 2021, using the purposive sampling method. The generalized method of moments (GMM) estimator technique was employed for data analysis. The findings indicate that inventory turnover and receivable collection positively impact financial performance. the finding revealed that inventory turnover, and receivable collection have statistical significant effect on return on equity with the coefficient (-0.6150, and 0.0067) and pvalue (0.000and 0.009) at 5% level of significant respectively. The study concluded that inventory turnover was noted to have increased the likelihood of financial performance and thereby Governments should endeavor to provide adequate infrastructure such as constant and stable electricity supply, good road network and rail system to facilitate the cost of production at minimum cost and movement of goods.
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