The Impact of Working Capital Management on the Profitability of Small and Medium Scale Enterprises in Nigeria

Research Article

The Impact of Working Capital Management on the Profitability of Small and Medium Scale Enterprises in Nigeria

Adediran A. Samson, Josiah Mary, Bosun-Fakunle Yemisi and Imuzeze Obehi Erekpitan

The objective of the research study was to empirically investigate the impact of working capital management on the profitability of a sample of small and medium-sized Nigerian firms. The data for the study were collected from 30 SMEs covering the single period of 2009. Data was collected from secondary sources (financial statement) and was analyzed using the multiple regression analysis. The results which are robust to the presence of endogeneity, demonstrate that managers can create value by resucing their firm’s number of day’s accounts receivable and inventories. Equally, shortening the cash conversion cycle also improves the firm’s profitability.

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Adediran A. Samson, Josiah Mary, Bosun-Fakunle Yemisi and Imuzeze Obehi Erekpitan, 2012. The Impact of Working Capital Management on the Profitability of Small and Medium Scale Enterprises in Nigeria. Research Journal of Business Management, 6: 61-69.

DOI: 10.3923/rjbm.2012.61.69

URL: https://scialert.net/abstract/?doi=rjbm.2012.61.69

Research Journal of Business Management

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Authors

Adediran A. Samson

Josiah Mary

Bosun-Fakunle Yemisi

Imuzeze Obehi Erekpitan

Keywords

Research Article

The Impact of Working Capital Management on the Profitability of Small and Medium Scale Enterprises in Nigeria

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