The impact of working capital management on the profitability of small and medium scale enterprises in Nigeria
Research Journal of Business Management
Department of Accounting Igbinedion, University Okada, College of Management Science, Edo State, Nigeria
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 SME's 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 reducing their firm's number of day's accounts receivable and inventories. Equally, shortening the cash conversion cycle also improves the firm's profitability. © 2012 Academic Journals Inc.