Impact of working capital management, ownership structure and board size on the profitability of small and medium-sized entities in Nigeria
This paper aims to investigate the impact of working capital management (WCM), family ownership and board size on the profitability of small and medium-sized entities in Nigeria.The panel data regression analysis is employed using financial reports of 47 small and medium enterprises (SMEs) of North...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2015
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| Online Access: | https://repo.uum.edu.my/id/eprint/15026/1/1346-3944-1-PB%20%283%29.pdf |
| _version_ | 1803626896705978368 |
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| author | Tsagem, Muhammad Musa Aripin, Norhani Ishak, Rokiah |
| author_facet | Tsagem, Muhammad Musa Aripin, Norhani Ishak, Rokiah |
| author_sort | Tsagem, Muhammad Musa |
| collection | UUM |
| description | This paper aims to investigate the impact of working capital management (WCM), family ownership and board size on the profitability of small and
medium-sized entities in Nigeria.The panel data regression analysis is employed using financial reports of 47 small and medium enterprises (SMEs) of North-West geopolitical zone in Nigerian for the period 2008-2012.The study found a statistically significant relationship between account receivables period, accounts payable period, cash conversion efficiency and board size with SMEs profitability, proxy by gross operating profits.Further, a positive relationship between inventory holding periods, cash conversion cycle and cash ratio with profitability were established.The result suggest that SMEs owners/managers need to give more emphasis to efficient management of their limited resources by managing their account receivables, accounts
payable, inventories and cash effectively for improve profitability.In addition, the study contributes to existing literatures on the importance of WCM and board size to SMEs for sustainability and growth. |
| first_indexed | 2024-07-04T05:57:27Z |
| format | Article |
| id | uum-15026 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:57:27Z |
| publishDate | 2015 |
| publisher | EconJournals |
| record_format | dspace |
| spelling | uum-150262016-04-17T03:34:15Z https://repo.uum.edu.my/id/eprint/15026/ Impact of working capital management, ownership structure and board size on the profitability of small and medium-sized entities in Nigeria Tsagem, Muhammad Musa Aripin, Norhani Ishak, Rokiah HF Commerce This paper aims to investigate the impact of working capital management (WCM), family ownership and board size on the profitability of small and medium-sized entities in Nigeria.The panel data regression analysis is employed using financial reports of 47 small and medium enterprises (SMEs) of North-West geopolitical zone in Nigerian for the period 2008-2012.The study found a statistically significant relationship between account receivables period, accounts payable period, cash conversion efficiency and board size with SMEs profitability, proxy by gross operating profits.Further, a positive relationship between inventory holding periods, cash conversion cycle and cash ratio with profitability were established.The result suggest that SMEs owners/managers need to give more emphasis to efficient management of their limited resources by managing their account receivables, accounts payable, inventories and cash effectively for improve profitability.In addition, the study contributes to existing literatures on the importance of WCM and board size to SMEs for sustainability and growth. EconJournals 2015 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/15026/1/1346-3944-1-PB%20%283%29.pdf Tsagem, Muhammad Musa and Aripin, Norhani and Ishak, Rokiah (2015) Impact of working capital management, ownership structure and board size on the profitability of small and medium-sized entities in Nigeria. International Journal of Economics and Financial Issues, 5. pp. 77-83. ISSN 2146-4138 http://www.econjournals.com/ |
| spellingShingle | HF Commerce Tsagem, Muhammad Musa Aripin, Norhani Ishak, Rokiah Impact of working capital management, ownership structure and board size on the profitability of small and medium-sized entities in Nigeria |
| title | Impact of working capital management, ownership structure and board size on the profitability of small and medium-sized entities in Nigeria |
| title_full | Impact of working capital management, ownership structure and board size on the profitability of small and medium-sized entities in Nigeria |
| title_fullStr | Impact of working capital management, ownership structure and board size on the profitability of small and medium-sized entities in Nigeria |
| title_full_unstemmed | Impact of working capital management, ownership structure and board size on the profitability of small and medium-sized entities in Nigeria |
| title_short | Impact of working capital management, ownership structure and board size on the profitability of small and medium-sized entities in Nigeria |
| title_sort | impact of working capital management ownership structure and board size on the profitability of small and medium sized entities in nigeria |
| topic | HF Commerce |
| url | https://repo.uum.edu.my/id/eprint/15026/1/1346-3944-1-PB%20%283%29.pdf |
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