WORKING CAPITAL MANAGEMENT AND FIRM PERFORMANCE OF HIGH-GROWTH ENTERPRISES: EVIDENCE OF CORPORATE FINANCIAL MANAGEMENT IN EMERGING ECONOMIES
This study examines the relationship between working capital management (WCM) and profitability among high-growth firms (HGFs) in Nigeria, utilizing a comprehensive panel dataset spanning 2002 to 2023. Employing fixed effects and system GMM estimations, the analysis reveals a significant inverted U...
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| Format: | Article |
| Language: | English |
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Department of Accounting and Finance, Federal University Gusau
2025-07-01
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| Series: | Gusau Journal of Accounting and Finance |
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| Online Access: | https://journals.gujaf.com.ng/index.php/gujaf/article/view/366 |
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| _version_ | 1849228286071144448 |
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| author | Emmanuel Imuede Oyasor |
| author_facet | Emmanuel Imuede Oyasor |
| author_sort | Emmanuel Imuede Oyasor |
| collection | DOAJ |
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This study examines the relationship between working capital management (WCM) and profitability among high-growth firms (HGFs) in Nigeria, utilizing a comprehensive panel dataset spanning 2002 to 2023. Employing fixed effects and system GMM estimations, the analysis reveals a significant inverted U-shaped relationship between the cash conversion cycle (CCC) and firm profitability, indicating that both insufficient and excessive investment in working capital adversely affect financial performance. Subsample analyses across industries and time periods further highlight sectoral heterogeneity and increased sensitivity of WCM post-2015 amid macroeconomic volatility. These findings underscore the critical need for balanced, dynamic working capital policies tailored to firm-specific and macroeconomic contexts. The study contributes to the understanding of financial management strategies in emerging markets and offers actionable insights for corporate managers, financial institutions, and policymakers aiming to enhance firm resilience and economic development.
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| format | Article |
| id | doaj-art-3a970ebb60d64cf5a133a889e41a34b7 |
| institution | Kabale University |
| issn | 2756-665X 2756-6897 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Department of Accounting and Finance, Federal University Gusau |
| record_format | Article |
| series | Gusau Journal of Accounting and Finance |
| spelling | doaj-art-3a970ebb60d64cf5a133a889e41a34b72025-08-23T05:06:32ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2756-68972025-07-016110.57233/gujaf.v6i1.03WORKING CAPITAL MANAGEMENT AND FIRM PERFORMANCE OF HIGH-GROWTH ENTERPRISES: EVIDENCE OF CORPORATE FINANCIAL MANAGEMENT IN EMERGING ECONOMIESEmmanuel Imuede Oyasor0Department of Accounting Science, Walter Sisulu University, Mthatha, South Africa This study examines the relationship between working capital management (WCM) and profitability among high-growth firms (HGFs) in Nigeria, utilizing a comprehensive panel dataset spanning 2002 to 2023. Employing fixed effects and system GMM estimations, the analysis reveals a significant inverted U-shaped relationship between the cash conversion cycle (CCC) and firm profitability, indicating that both insufficient and excessive investment in working capital adversely affect financial performance. Subsample analyses across industries and time periods further highlight sectoral heterogeneity and increased sensitivity of WCM post-2015 amid macroeconomic volatility. These findings underscore the critical need for balanced, dynamic working capital policies tailored to firm-specific and macroeconomic contexts. The study contributes to the understanding of financial management strategies in emerging markets and offers actionable insights for corporate managers, financial institutions, and policymakers aiming to enhance firm resilience and economic development. https://journals.gujaf.com.ng/index.php/gujaf/article/view/366Working capital managementcash conversion cyclefirm profitabilityhigh-growth firmsNigeriaemerging markets |
| spellingShingle | Emmanuel Imuede Oyasor WORKING CAPITAL MANAGEMENT AND FIRM PERFORMANCE OF HIGH-GROWTH ENTERPRISES: EVIDENCE OF CORPORATE FINANCIAL MANAGEMENT IN EMERGING ECONOMIES Gusau Journal of Accounting and Finance Working capital management cash conversion cycle firm profitability high-growth firms Nigeria emerging markets |
| title | WORKING CAPITAL MANAGEMENT AND FIRM PERFORMANCE OF HIGH-GROWTH ENTERPRISES: EVIDENCE OF CORPORATE FINANCIAL MANAGEMENT IN EMERGING ECONOMIES |
| title_full | WORKING CAPITAL MANAGEMENT AND FIRM PERFORMANCE OF HIGH-GROWTH ENTERPRISES: EVIDENCE OF CORPORATE FINANCIAL MANAGEMENT IN EMERGING ECONOMIES |
| title_fullStr | WORKING CAPITAL MANAGEMENT AND FIRM PERFORMANCE OF HIGH-GROWTH ENTERPRISES: EVIDENCE OF CORPORATE FINANCIAL MANAGEMENT IN EMERGING ECONOMIES |
| title_full_unstemmed | WORKING CAPITAL MANAGEMENT AND FIRM PERFORMANCE OF HIGH-GROWTH ENTERPRISES: EVIDENCE OF CORPORATE FINANCIAL MANAGEMENT IN EMERGING ECONOMIES |
| title_short | WORKING CAPITAL MANAGEMENT AND FIRM PERFORMANCE OF HIGH-GROWTH ENTERPRISES: EVIDENCE OF CORPORATE FINANCIAL MANAGEMENT IN EMERGING ECONOMIES |
| title_sort | working capital management and firm performance of high growth enterprises evidence of corporate financial management in emerging economies |
| topic | Working capital management cash conversion cycle firm profitability high-growth firms Nigeria emerging markets |
| url | https://journals.gujaf.com.ng/index.php/gujaf/article/view/366 |
| work_keys_str_mv | AT emmanuelimuedeoyasor workingcapitalmanagementandfirmperformanceofhighgrowthenterprisesevidenceofcorporatefinancialmanagementinemergingeconomies |