WORKING CAPITAL MANAGEMENT AND FIRM VALUE OF LISTED PHARMACEUTICAL COMPANIES IN NIGERIA
Abstract
This study examines the effect of working capital management (WCM) on the firm value of listed pharmaceutical companies in Nigeria. The study used the entire number of 7 listed pharmaceutical companies , with data drawn from annual reports spanning 2014 to 2024. This study employed descriptive statistics and panel estimation regression methods which yielded notable results: Account receivable period had a substantial favorable effect on firm value (t-stat. = 3.3168, p<0.05).The results further revealed that account payment period had substantial favourable effect on firm value (t-stat.= 3.6067, p<0.05). Moreover, inventory conversion period (t-stat=2.6401, p<0.05) had a substantial favorable effect on firm value. Furthermore, cash conversion circle (t-stat=-3.3728, p<0.05) had a substantial negative effect. The author concluded that WCM is a driver of improving firm value among listed firms in Nigeria. The research paper suggests that it is appropriate for pharmaceutical companies to control the working-capital cycle efficiently, making them more likely to attract and retain customers, thus adding value.
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Published in UNIPORT JOURNAL OF BUSINESS, ACCOUNTING & FINANCE MANAGEMENT
ISSN: 1596-9911
This article appears in our peer-reviewed academic journal
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