Impact of Working Capital Management on Corporate Firm Growth

ABSTRACT

The aim of this study is to analyze the effect of working capital management on corporate firm's profitability. We identify problems inherent with the management of working capital in corporate firm and ascertain the best possible ways of managing it. In accordance with this aim, to consider statistically significant relationships between firm profitability and working capital, a sample consisting of Zenith Bank Pie for the period of 2006 - 201 0 has been analyzed under correlation model. Empirical findings show that working capital significantly and positively affect the profitability of Zenith Bank Pie. Among the findings of the study include; poor internal control system, unqualified finance officials, poor working capital managers and management etc. The aforementioned problems can be reduced if; corporate firms employ competent and experience financial managers, install a proper internal control systems and giving working capital decisions priority amongst other things in corporate firms