التفاصيل البيبلوغرافية
| العنوان: |
The Effects of Working Capital Management on the Financial Performance of Commercial and Service Firms Listed on the Nairobi Securities Exchange in Kenya. |
| المؤلفون: |
Wanzala, Richard Wamalwa, Obokoh, Lawrence |
| المصدر: |
Risks; Aug2024, Vol. 12 Issue 8, p119, 11p |
| مصطلحات موضوعية: |
FINANCIAL performance, FINANCIAL management, STOCKHOLDER wealth, RETURNS on sales, ORGANIZATIONAL performance, WORKING capital |
| مستخلص: |
Working capital management is critical because it affects a company's profitability, liquidity, and investment decisions, all of which have an impact on financial performance. As a result, effective and efficient working capital management is an essential component for commercial and service businesses. Given the importance of the commercial and services industries to the Kenyan economy, the goal of this research was to investigate the impact of working capital management on the financial performance of these firms, particularly those listed on the Nairobi Securities Exchange (NSE), from 2003 to 2022. Working capital management was measured using the average age of inventory, average collection period, average payment period, and cash conversion cycle, whereas financial performance was measured using return on asset, return on equity, and net operating profit margin. Using panel regression analysis, the results showed that the average inventory age, average collection period, average payment period, and cash conversion cycle were all negatively related to financial performance for NSE-listed commercial and service firms. Based on the findings, it is recommended that Kenyan commercial and service firms adopt prudent optimal working capital management practices to improve firm financial performance and maximize shareholder wealth. [ABSTRACT FROM AUTHOR] |
|
Copyright of Risks is the property of MDPI and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) |
| قاعدة البيانات: |
Complementary Index |
Full Text Finder