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The relationship between working capital management and corporate returns of cement industry of emerging market
Author(s) -
Nwude E. Chuke,
Allison Patricia Ukachi,
Nwude Comfort Amaka
Publication year - 2021
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/ijfe.1959
Subject(s) - accounts payable , return on equity , weighted average return on assets , return on assets , holding period return , economics , stock exchange , working capital , proxy (statistics) , return on capital , equity (law) , business , finance , investment performance , monetary economics , return on investment , payment , financial capital , profit (economics) , capital formation , statistics , political science , law , microeconomics , mathematics
This study examines the influence of working capital cycles on financial performance of cement industry of Nigeria with a sample of all the listed cement companies in the Nigerian Stock Exchange for the period 2007 to 2018. Correlation and regression analysis were used tools of analysis. Financial performance was proxy by return on assets and return on equity. The study show that a shorter inventory conversion period, account payable period and a longer account collection period enhances the return on asset while a shorter inventory conversion, account collection and account payable periods enhances the return on equity.