ABSTRACT
Large inventory also reduces the risk of a
stock-out. Trade credit may stimulate sales because it allows a firm to access
product quality before paying ( Raheman and Nasr, 2007). Another component of
working capital is accounts payables, Raheman and Nasr (2007) indicated that
delaying payment of accounts payable to suppliers allows firms to access the
quality of obtaining products and can be inexpensive and flexible source
offinancing. On the other hand, delaying of such payables can be expensive if a
firm is offered a discount for the early payment. By the same token,
uncollected accounts receivables can lead to cash inflow problems for the firm.
A popular measure of working capital management is the cash conversion cycle,
that is, the time span between the expenditure for the purchases ofraw
materials and the collection ofsales of finished goods. Deloof (2003) found
that the longer the time lags, the larger the investment in working capital,
and also a long cash conversion cyclemight increase profitability because it
leadsto higher sales. However, corporate profitability might decrease with the
cash conversion cycle, ifthe costs of higher investment in working capital rise
faster than the benefits of holding more inventories or granting more trade
credit to customers And the main cause ofthe failure of a business enterprise
has been found to be the shortage of working capital, their mishandling, and
mismanagement of working capital and underutilization of capacity (Vataliya,
2009). In general, working capital management is not only improving financial
performance in today’s cash-strapped and uncertain economy, but it is die
question ofmeeting firm’s day to day operation. Therefore, it is a significant
issue to know and understand the impacts of working capital management and its
influence on firms’ performance. Also, several research works have identified
the impact, of working capital management on the performance of organizations.
NDUBUISIONYEBUCHI, G (2024). Effect of Intellectual Capital Management on Earnings of Generation of Listed Commercial Banks in Nigeria (2011- 2017):- Ndubuisi, Onyebuchi G.. Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-intellectual-capital-management-on-earnings-of-generation-of-listed-commercial-banks-in-nigeria-2011-2017-ndubuisi-onyebuchi-g-7-2
GRACE., NDUBUISIONYEBUCHI. "Effect of Intellectual Capital Management on Earnings of Generation of Listed Commercial Banks in Nigeria (2011- 2017):- Ndubuisi, Onyebuchi G." Mouau.afribary.org. Mouau.afribary.org, 10 Jul. 2024, https://repository.mouau.edu.ng/work/view/effect-of-intellectual-capital-management-on-earnings-of-generation-of-listed-commercial-banks-in-nigeria-2011-2017-ndubuisi-onyebuchi-g-7-2. Accessed 30 Oct. 2024.
GRACE., NDUBUISIONYEBUCHI. "Effect of Intellectual Capital Management on Earnings of Generation of Listed Commercial Banks in Nigeria (2011- 2017):- Ndubuisi, Onyebuchi G.". Mouau.afribary.org, Mouau.afribary.org, 10 Jul. 2024. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-intellectual-capital-management-on-earnings-of-generation-of-listed-commercial-banks-in-nigeria-2011-2017-ndubuisi-onyebuchi-g-7-2 >.
GRACE., NDUBUISIONYEBUCHI. "Effect of Intellectual Capital Management on Earnings of Generation of Listed Commercial Banks in Nigeria (2011- 2017):- Ndubuisi, Onyebuchi G." Mouau.afribary.org (2024). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-intellectual-capital-management-on-earnings-of-generation-of-listed-commercial-banks-in-nigeria-2011-2017-ndubuisi-onyebuchi-g-7-2