Effects of working capital centralization on the cash flows of listed manufacturing companies in Kenya
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Date
2015-11Author
Cheme, Veronicah M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The objective of the study was to establish the effect of centralization of working capital
management on the cash flows of quoted manufacturing companies in Kenya. Secondary
data was collected from published financial statements of 7 quoted manufacturing
companies for a period of 5 years between 2010 and 2014. Data was analyzed using
Microsoft Excel 2013 data analysis tool. Regression and correlation analysis was used to
determine the nature and strength of the relationship between independent and dependent
variables. The study findings reveal that centralization of working capital is very
significant in determining the cash flows of manufacturing companies in Kenya. This can
be supported by the 27.4% variance of cash flow that is explained by centralization of
working capital management. On the other hand lack of centralization of working capital
leads half variance in cash flows as indicated by 12.2% that is explained by the net
inventory; net accounts receivable; net accounts payable and net short-term loans.
Publisher
University of Nairobi