BUSINESS AND FINANCE JOURNAL

WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF EMERGING ECONOMIES: EVIDENCE FROM NIGERIA

KAZEEM ALANI ZAKARIYAH, JANET TEMILADE MOGAJI, FATAI BUSAYO YEKEEN, MUIDEEN RAIFU

June 9, 2026

Citation

BUSINESS AND FINANCE JOURNAL , Vol. 17 (2) (2026) , pp. 110-119

Details

ISSN: 988-47876
Published: June 9, 2026
Status: Published

Abstract

This study evaluated the influence of working capital management on financial performance of publicly listed oil and gas companies in Nigeria. The populations of the study are all the registered oil and gas firms on Nigerian Stock Exchange during the study period while a sample of 7 firms were selected. The study made use of secondary data obtained from the annual reports of the sample firms from 2014 to 2023. The study employed descriptive and inferential statistics for analysis. Working capital management variables are Account Receivable Period (ARP) Account Payable Period (APP) Cash Conversion Cycle (CCC) and Inventory Conversion Period (INVP) while financial performance is proxy by operating efficiency. The findings of the study indicated that there is statistically significant positive relationship between the ARP, APP, CCC and performance measured by Asset Turnover (AST). The study therefore suggests that firms should maintain an optimal level of working capital in order to enhance their efficiency. Additionally, the effective management of cash flow is deemed to be of utmost importance for organizations while maintaining a balanced working capital management, with particular focus on managing account receivables, payables, and cash conversion cycle.

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