Effects of working capital on firm's value among manufacturing firms listed in the Nairobi securities exchange
| dc.contributor.author | Ndungu, Angelica | |
| dc.date.accessioned | 2021-01-25T11:40:48Z | |
| dc.date.available | 2021-01-25T11:40:48Z | |
| dc.date.issued | 2020 | |
| dc.identifier.uri | http://erepository.uonbi.ac.ke/handle/11295/154066 | |
| dc.description.sponsorship | This study explored working capital management effects on value of organizations in the manufacturing and allied category. The stakeholder theory and the Cash Conversion Cycle Theory were the theoretical underpinnings of this research using a descriptive cross-sectional study. The target population and sample was the nine firms in the NSE. Checking for normality, multicollinearity, and heteroscestdastcicty were the diagnostic tests conducted before doing the inferential statistics. The correlation findings showed that there were negative and insignificant correlations between accounts receivable days and accounts payables days and firm value whilst a positive and significant correlation between firms’ value was observed. The model was found to explain 35.9 % of change in firm value and this was significant. Inventory days had negative and statistically significant impact on firm value whilst account receivable days, and account payable days had positive and insignificant effects on value of a company. The study recommends that managers of manufacturing companies should aim to store less amounts of inventory so as to have low costs of warehousing, insurance, and security costs that usually arise with increasing inventory and allocation of the company’s funding so that the company faces high interest expenses. The study recommends that manufacturing firms should strive to reduce the amount of inventory so as to reduce costs because a longer duration of inventory days also increase the costs and would require more funding from the company to meet these costs and this can reduce the value for the firms. There is need for further research on WCM components effects on firm value among small and medium manufacturing firms and other larger firms that are not listed on the NSE. The study further suggests for future research to consider using integrating secondary and primary data to gain more insight on the influence of WCM factors on value of companies. | en_US |
| dc.language.iso | en | en_US |
| dc.publisher | UoN | en_US |
| dc.rights | Attribution-NonCommercial-NoDerivs 3.0 United States | * |
| dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/us/ | * |
| dc.subject | Effects of working capital on firm's value among manufacturing firms listed in the Nairobi securities exchange | en_US |
| dc.title | Effects of working capital on firm's value among manufacturing firms listed in the Nairobi securities exchange | en_US |
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