THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT AND PERFORMANCE OF QUOTED NON-FINANCIAL FIRMS IN NIGERIA – International Journal of Social Sciences and Management Review

THE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT AND PERFORMANCE OF QUOTED NON-FINANCIAL FIRMS IN NIGERIA

Authors: Odetayo T. A. Ph.D, Afolabi C. S. Ph.D, Soyemi K. A. Ph.D & Akinleye B. O. Ph.D

ABSTRACT

Working Capital Management entails the management of current assets and current liabilities to enhance the profitability and liquidity of businesses. The researcher observed that there is a paucity of literature in this area hence this study examined the relationship between working capital management and the performance of a quoted non–financial firms (QFFs) in Nigeria. Descriptive ex post facto research design was adopted. Purposive and cluster sampling techniques were used to select 95 out of 111 quoted non-financial firms listed on the Nigerian Stock Exchange (NSE). Data were obtained from the annual reports of the firms and the NSE fact book for 2019. Pearson’s product correlation analysis was used to analyse the data. The result showed a diverse significant relationship between working capital management and the financial performance of QNFFs. The study recommended that for the quoted non-financial firms in Nigeria to survive and maintain stability in performance, they should manage their working capital components efficiently.

Keywords: Working Capital Management; Performance; Quoted Non-Financial Firms

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