ABSTRACT
This study focuses on effect of working capital management on performance of Deposit Money Banks (A study of First Bank Pie and Zenith Bank Pie). The major problem examined in this research is the ineffective and inefficient management of working capital. Data were collected from secondary sources using the ex-post facto research design. The data collected were then tabulated and analyzed using the multiple regression analysis. The result of hypothesis one revealed that current ratio has a significant effect on the profitability of
deposit money banks in Nigeria. The result of hypothesis two showed that debt-to-equity ratio has a significant effect on the profitability of deposit money banks in Nigeria. The finding of hypothesis three revealed that cash ratio has no significant effect on the
profitability of deposit money banks in Nigeria. The finding of hypothesis four indicated that debt ratio has a significant effect on the profitability of deposit money banks in Nigeria.
It is recommended that the management should ensure that the bank will have more assets to pay off their debts in order to have higher profitability. The staff and management should also concentrate on working capital decisions to optimize investments in them and ensure proper planning, forecasting and control. Also the managers should try as much as possible to maintain (manage) their cash operating cycle. This is because, (even as indicated by the cash conversion cycle (CCC)) the longer the cash cycle the less profitable the firm becomes; meaning that a shorter operating cycle is more desirable and advisable as it affects
profitability.
TABLE OF CONTENTS
Dedication IV
Acknowledgement v
Abstract IX
CHAPTER ONE: INTRODUCTION
1.1 Background to The Study
1.2 Statement of The Problem 3
1.3 Objectives of The Study 3
1.4 Research Questions 4
1.5 Research Hypothesis 4
1.6 Significance of The Study 4
1.7 Scope and limitation of The Study s
1.8 Definition of Terms 6
CHAPTER TWO: REVIEWOF RELATED LITERATUR
2.1 Conceptual Framework
2.1.1 Adequacy of Working Capital 7
2.1.2Excess of Inadequacy of Working Capital 8
2.1 3 Features of Overtrading
2.1. 4 Dangers oflnadequate Working Capital
2.1.S Inventory Management 9
2.l.6 Accounts Receivables Management
2.1.7 Accounts Payables Management 10
2.1.8 Cash Management 11
2.1.9 Cash Conversion Cycle 11
2.1.10 An Overview of Banking Sector in Nigeria 12
2.1.11 Factors Affecting the Performance of Banks 16
2.1.12 Performance of Deposit Money Banks 17
2.2 Theoretical Framework 18
2.2.1 Liquidity and Profitability Trade Off Theory 1
2.2.2 Agency/Stakeholders Theory 19
2.2.3 Resource-Based Theory 20
2.2.4 Cash Conversion Theory 20
2.3 Empirical Review 21
2.4 Summary/ Gap in Literature 25
CHAPTERTHREE:METHODOLOGY
3 .1 Research Design 27
3 .2 Area of Study 27
3 .3 Sources of Data 27
3.4 Validity and Reliability of the Study 28
3.5 Method and Technique of Data Analysis 28
3.6 Model Specification vii
CHAPTER 4: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Data Presentation 30
4.2 Data Analysis 33
4.3 Test of Hypotheses 34
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
5.2 Conclusion
5.3 Recommendations
5.4 Suggestion for further studies
REFERENCES
APPENDICES viii
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CHUKWUEMEKA, M (2020). EFFECT OF WORKING CAPITAL MANAGEMENT ON PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA: A STUDY OF FIRST BANK PLC AND ZENITH BANK PLC. Mouau.afribary.org: Retrieved Nov 24, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-and-zenith-bank-plc
MOUAU/ACC/14/18649, CHUKWUEMEKA. "EFFECT OF WORKING CAPITAL MANAGEMENT ON PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA: A STUDY OF FIRST BANK PLC AND ZENITH BANK PLC" Mouau.afribary.org. Mouau.afribary.org, 28 Apr. 2020, https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-and-zenith-bank-plc. Accessed 24 Nov. 2024.
MOUAU/ACC/14/18649, CHUKWUEMEKA. "EFFECT OF WORKING CAPITAL MANAGEMENT ON PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA: A STUDY OF FIRST BANK PLC AND ZENITH BANK PLC". Mouau.afribary.org, Mouau.afribary.org, 28 Apr. 2020. Web. 24 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-and-zenith-bank-plc >.
MOUAU/ACC/14/18649, CHUKWUEMEKA. "EFFECT OF WORKING CAPITAL MANAGEMENT ON PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA: A STUDY OF FIRST BANK PLC AND ZENITH BANK PLC" Mouau.afribary.org (2020). Accessed 24 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-performance-of-deposit-money-banks-in-nigeria-a-study-of-first-bank-plc-and-zenith-bank-plc