Skoči na glavni sadržaj

Izvorni znanstveni članak

https://doi.org/10.32728/ric.2017.31/1

IS WORKING CAPITAL MANAGEMENT IMPORTANT? EMPIRICAL EVIDENCE FROM MANUFACTURING COMPANIES IN GHANA

Joseph Kwadwo Tuffour orcid id orcid.org/0000-0002-2671-5472 ; School of Graduate Studies, University of Professional Studies, Accra, Ghana
John Adjei Boateng ; School of Graduate Studies, University of Professional Studies, Accra, Ghana


Puni tekst: engleski pdf 168 Kb

str. 5-20

preuzimanja: 3.328

citiraj


Sažetak

The objective of the study is to empirically examine the effect of working capital management on performance of manufacturing firms in Ghana. The study used six listed manufacturing companies on the Ghana Stock Exchange for the period 2008-2014. Correlation and regression analyses were used to analyze the effect of working capital management on manufacturing firms’ performance. The study examines the effect of different components of working capital management on firm’s performance. The study finds that the current ratio, average collection period and the accounts payable period have positive effect on profitability. However, only the current ratio has statistical significance. Also, while inventory conversion period as well as the cash conversion cycle have negative effect on performance,
they are all statistically insignificant. It is recommended that finance managers should implement efficient and effective ways of managing working capital management. Emphasis should be placed on average payment period, improving sales growth and maintaining higher current ratio.

Ključne riječi

Working Capital Management; Return on Assets; Firm Performance; Manufacturing Companies; Ghana Stock Exchange

Hrčak ID:

181079

URI

https://hrcak.srce.hr/181079

Datum izdavanja:

28.4.2017.

Posjeta: 4.607 *