Smart Consult, Makurdi,
Benue State
Nigeria
Research Article
Effect of Working Capital Management on the Performance of Food and
Beverage Industries in Nigeria
Author(s): Criscent Ike EyaCriscent Ike Eya
This study examined the impact of working capital management on firm performance using Nestle Food Nigeria plc as a case study. The study was anchored on Behavioural Finance Theory, Economic Order Quantity (EOQ) Model and Theory of Capital Movement. Secondary data was used for the study and it was obtained from the financial statement of Nestle Nigeria Plc for the period of 2004-2013. The study made use of Ordinary Least Squares (OLS) regression after the data was subjected to unit root test and found to be stationary at levels and are integrated of order zero [I(0)]. The findings revealed that a positive relationship exist between Current Ratio (CUR), Quick Ratio (QUR) and Return on Asset (ROA) and the relationship is statistically significant (p<0.05) and in line with a priori expectation. The coefficient of determination (R2) for the study is 85.23%. This indicates that 85.23% o.. Read More»
