WORKING CAPITAL MANAGEMENT AND FIRM VALUE
Keywords:
Working capital management, Firm value, Receivable period, Payable period, Inventory daysAbstract
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.