WORKING CAPITAL MANAGEMENT AND FIRM VALUE

Authors

  • Monday Olade IZEVBEKHAI PhD Accountancy Department, Auchi Polytechnic, Auchi, Edo State
  • Henry Idowu OHIAFI Accountancy Department, Auchi Polytechnic, Auchi, Edo State
  • Mohammed ISAH Department of Taxation, Auchi Polytechnic, Auchi, Edo State

Keywords:

Working capital management, Firm value, Receivable period, Payable period, Inventory days

Abstract

This study examined working capital management and firm value. The specific objectives of the study was to ascertain if receivable period has significant effect on firm value of listed insurance firms in Nigeria and to also examine if payable period has significant effect on firm value of listed insurance firms in Nigeria. The secondary source of data collection was adopted in the study where the purposive sampling technique was used to select a sample size of four (4) listed insurance firms in Nigeria. Ordinary Least Square regression analysis was used in this study and the findings revealed that both payable period and inventory days have significant
effect on firm value of listed insurance firms in Nigeria. The study recommended amongst others that insurance firms should emphasize on increasing sales to increase inventory turnover to achieve maintainable competitive advantage through managing inventory to optimal level so as to maximize profitability and that firms in the insurance sectors should put in place measures
and strategies that would ensure prompt payment from their customers.

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Published

10-11-2023

How to Cite

IZEVBEKHAI PhD, M. O., OHIAFI, H. I., & ISAH, M. (2023). WORKING CAPITAL MANAGEMENT AND FIRM VALUE. Frontiers of Research in Arts and Management Sciences, 1(1), 56–72. Retrieved from http://auchipolyjournals.com/index.php/frams/article/view/56

Issue

Vol. 1 No. 1 (2023): FRAMS Volume 1 Issue 1 November, 2023

Section

Articles