Impact Of Working Capital Management On Corporate Profitability Of Nigerian Manufacturing Firms

TABLE OF CONTENTS

Title page

Declaration

Approval Page

Dedication

Acknowledgement

Abstract

List of Appendixes

List of Tables

Chapter One

Introduction 1

1.1 Background of the study

1.2 Statement of research problem

1.3 Objectives of the study

1.4 Research Questions

1.5 Research Hypotheses

1.6 Scope of the study

1.8 Limitation of the study 5

1.9 Operational definition of terms 5

References 7

Chapter Two

Review of Related Literature 9

2.1 Introduction 9

2.2 Conceptual framework 9

2.2.1 Current Assets 10

2.2.2 Non-Current Assets 11

2.2.3 Current Liabilities 12

2.2.4 Difficulties in Managing working Capital 12

2.2.5 Overtrading 13

2.2.6 Accounts receivable management 14

2.2.7 Cash Conversion Cycle 14

2.2.8 Accounts Payable management 15

2.2.9 Liquidity management 16

2.2.10 Stocks/Inventories management 17

2.3 Theoretical framework 19

2.3.1 Operating Cycle Theory 19

2.3.2 The Importance of Operating Cycle Theory 19

2.3.3 Trade-Off Theory 20

2.4 Empirical Review 21

2.5 Summary of Literature Review 31

References 33

Chapter three

 Research Methodology 38

3.1 Research Design 38

3.2 Population and Sample size 38

3.3 Nature and Sources of Data 38

3.4 Description of Research Variables 38

3.4.1 Dependent Variable (Profitability) ` 39

3.4.2 Independent Variables 39

3.4.2.1 Accounts Receivables 39

3.4.2.2 Stock Turnover 39

3.4.2.3 Accounts Payable 39

3.4.2.4 Cash Conversion Cycle ratio 40

3.4.2.5 Liquidity ratio 40

3.5 Techniques for Analysis 41

3.6 Model Specification 42

3.7 Computed and Multiple Regression Analyse 42

References 45

Chapter Four

Data presentation and analysis 47

4.1 Introduction 47

4.1.1 Raw Data 47

4.2 Descriptive statistics 60

4.2.1 Descriptive statistics for the twenty two firms considered in the study 60

4.2.2 Food and Beverages sub –sector 61

4.2.3 Industrial and Domestic products sub- sector 62

4.2.4 Healthcare sub-sector 63

4.2.5 Building materials and chemical sub- sector 64

4.2.6 Breweries sub-sector 65

4.2.7 Packages sub-sector 66

4.2.8 Automobile and Tyre sub-sector 67