Working Capital Management and Firm Value: Evidence from  Listed Non-Financial Firms in Nigeria

Keywords: Working Capital Management, firm value, non-financial firms

This study examined the effect of working capital management on the firm value of non

financial firms in Nigeria using the enterprise value multiple which was measured as enterprise

value scaled by EBITDA as the indicator of firm value and extracted panel data from audited

financial statements of sampled thirty-three non-financial firms listed on the Nigerian Exchange

Group (NGX) Plc from 2012 to 2021. The results of the static panel least square and the panel

fixed effect model estimation techniques revealed that all the WCM components have a

significant effect on the firm value of non-financial firms in Nigeria which implies that WCM is

highly essential for improved firm value. We, therefore, recommend that non-financial firms in

Nigeria should adopt conservative account payable management strategies that will enable quick

settlement of short-term obligations when they fall due. They should also adopt liberal account

receivable management strategies that will not endanger their liquidity and cash flow.

ADEBOLA, Feyisayo Tolulope

Department of Finance
Faculty of Management Science
University of Lagos, Akoka Yaba, Lagos, Nigeria

Oke, B. O

Faculty of Management Science
University of Lagos, Akoka Yaba, Lagos, Nigeria

OBADEMI, Olalekan Emmanuel

Department of Finance
Faculty of Management Science
University of Lagos, Akoka Yaba, Lagos, Nigeria, E-mail : eobademi@unilag.edu.ng