the impact of working capital management policies on firm performance or profitability

12
THE IMPACT OF WORKING CAPITAL MANAGEMENT POLICIES ON FIRM PERFORMANCE OR PROFITABILITY

Upload: karunakar

Post on 01-Dec-2015

6 views

Category:

Documents


0 download

DESCRIPTION

The Impact of Working Capital Management Policies on Firm Performance or Profitabilit1

TRANSCRIPT

Page 1: The Impact of Working Capital Management Policies on Firm Performance or Profitability

THE IMPACT OF WORKING CAPITAL MANAGEMENT POLICIES ON FIRM PERFORMANCE OR PROFITABILITY

Page 2: The Impact of Working Capital Management Policies on Firm Performance or Profitability

TABLE OF CONTENTSTitle Page……………………………………………………………………………….ICertification…………………………………………………………………………..IIDedication…………………………………………………………………………….IIIAcknowledgements………………………………………………………………...IVTable of Contents……………………………………………………………………VIAbstract……………………………………………………………………………. IX

CHAPTER ONE: INTRODUCTION1.1 Background to the Study

1.2 Statement of the Problem

1.3 Objectives of the Study

1.4 Research Questions

1.5 Research Hypothesis

1.6 Scope of the Study

1.7 Significance of the Study

1.8 Structure of the Study

CHAPTER TWO: REVIEW OF RELATED LITERATURE2.1 Introduction

2.2 The Concept of Working Capital

2.3 Nature of Working Capital

2.4 The Component of Working Capital

2.5 The Concept of Working Capital Management

2.5.1 Current Assets Management

2.5.2 Current Liabilities Management

2.6 Financing Model

2.7 Performance measure

2.8 HISTORICAL BACKGROUND OF DANGOTE CEMENT PLANT

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 INTRODUCTION

3.2 RESEARCH DESIGN

3.3 POPULATION AND SAMPLE PLAN

3.4 TYPES AND SOURCE OF DATA

Page 3: The Impact of Working Capital Management Policies on Firm Performance or Profitability

3.5 INSTRUMENT OF DATA COLLECTION

3.6 TECHNIQUES OF DATA PROCESSING AND ANALYSIS

3.6.1 MODEL SPECIFICATION

3.6.2 DECISION RULE

3.7 VARIABLES OF THE STUDY

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND

INTERPRETATION

4.1 INTRODUCTION

4.2 DATA PRESENTATION AND ANALYSIS

4.3 Analysis and Interpretation of data on Table I

4.4 Test of Hypotheses and interpretation results in table 1

4.5 Analysis and Interpretation of data in Table II

4.6 Test of Hypotheses and Interpretation of Results in Table II

4.7 Discussion of Findings

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS5.1 Summary of Findings

5.2 Limitation

5.3 Conclusion

5.4 Recommendations

APPENDIX I

APPENDIX II

Page 4: The Impact of Working Capital Management Policies on Firm Performance or Profitability

CHAPTER ONE

1.1 Background to the Study

Working capital management is an essential tool in the success story of

any firm in terms of profitability. Aminu (2003:95) defines working capital or

gross working capital as a firm’s investment in short-term assets that is cash,

account receivable, short-term or marketable securities and inventories.

After payment you will get the full project or call 08064034407 or

email [email protected]

PARTNERSHIPAfter purchasing your own project materials from us, you can

become our partner or representative in your school if you wish.

Copy all our topics and give to your friends. Then buy their

materials from us at a reduced price and resale to your friends.

Call 08064034407 to get the full project. Or [email protected].

1.2 Statement of the Problem

Financial performance of corporate organizations is a major source of

concern to the financial manager, the entire management as well as the

shareholders. This is more so as it is expected that every corporate

organization of any kind should make a fair return to justify its existence.

After payment you will get the full project or call 08064034407 or

email [email protected]

PARTNERSHIPAfter purchasing your own project materials from us, you can

become our partner or representative in your school if you wish.

Page 5: The Impact of Working Capital Management Policies on Firm Performance or Profitability

Copy all our topics and give to your friends. Then buy their

materials from us at a reduced price and resale to your friends.

Call 08064034407 to get the full project. Or [email protected].

1.3 Objectives of the Study

This study is on the impact of working capital management policies on

firm performance or profitability. The study seeks to accomplish the following

objectives:

After payment you will get the full project or call 08064034407 or

email [email protected]

PARTNERSHIPAfter purchasing your own project materials from us, you can

become our partner or representative in your school if you wish.

Copy all our topics and give to your friends. Then buy their

materials from us at a reduced price and resale to your friends.

Call 08064034407 to get the full project. Or [email protected]

1.4 Research Questions

Current assets are volatile. It, therefore means holding more than enough

of it is not cost effective and holding less than required means the firm may not

be able to meet its current obligations when necessary. This put the company in

a dangerous situation and affects the value of its stock.

This study seeks to answer the following questions:

Page 6: The Impact of Working Capital Management Policies on Firm Performance or Profitability

After payment you will get the full project or call 08064034407 or

email [email protected]

PARTNERSHIPAfter purchasing your own project materials from us, you can

become our partner or representative in your school if you wish.

Copy all our topics and give to your friends. Then buy their

materials from us at a reduced price and resale to your friends.

Call 08064034407 to get the full project. Or [email protected]

1.5 Research Hypothesis

After payment you will get the full project or call 08064034407 or

email [email protected]

PARTNERSHIPAfter purchasing your own project materials from us, you can

become our partner or representative in your school if you wish.

Copy all our topics and give to your friends. Then buy their

materials from us at a reduced price and resale to your friends.

Call 08064034407 to get the full project. Or [email protected]??

.

1.6 Scope of the Study

Research into working capital management as the field of accounting is

wide and encompassing. However, this study is limited and covers the working

capital management policies of Dangote Cement Company Plc, Benue Plant.

The period under investigation is from 2006 to 2010

Page 7: The Impact of Working Capital Management Policies on Firm Performance or Profitability

1.7 Significance of the Study

This study on working capital policy and its impact on profitability will

be significant or of importance to the following:

i. Student/Researchers: It will be beneficial to students and researchers as

it will add to the body of existing materials or knowledge which will open

way for further research on related subject matters.

ii. This work will also be useful to policy formulators such as company

mangers, as to the optimum working capital policy to adopt so as to bring

about effective working capital management and enhance profitability.

1.8 Structure of the Study

This research work is structured into five chapters, including the

introductory chapter which is chapter one.

Chapter one; covers the background to the study, the statement of the problem,

the objectives of the study, the research questions, research hypotheses, scope of

the study, significance of the study and the structure of the study.

Chapter two; reviews the literature related to the subject matter. It covers

the introduction, theoretical or conceptual framework, review of prior studies

and chapter summary.

Chapter three; which is on research methodology, covers research design

population and sample, definition of variables employed, types and sources of

Page 8: The Impact of Working Capital Management Policies on Firm Performance or Profitability

data, instruments of data collection, techniques of data processing and analysis,

declaration of known problems with design, and chapter summary.

Chapter four; presents data analysis and result; It covers data

presentation, analysis, discussion and interpretation of results, and chapter

summary.

Chapter five; is on summary, conclusions and recommendations; It covers

the summary of the project, conclusions, recommendations, limitations of the

study and suggestions for further research.

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S) After paying the appropriate amount (#3500) into our bank Account below, send the following information to 08064034407:

(1)Your project topics(2) Email Address(3) Payment Name(4)Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

MAIN BANK ACCOUNTAccount Name: ONOWA SIMON O.Account Number: 3181087193Bank: ECO Bank.

HOW TO IDENTIFY SCAM/FRAUDAs a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

Page 9: The Impact of Working Capital Management Policies on Firm Performance or Profitability

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner.

CAUTION/WARNINGPlease, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.