Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana
This study sought to determine the effects aggressive/conservative current asset investment and financing policies have on firms′ return for six manufacturing firms listed at Ghana Stock Exchange for a period of 2000-2013. Data were obtained from the annual reports of the firms and the Ghana Stock E...
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Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house
2017-06-01
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Series: | Scientific Annals of Economics and Business |
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doaj-f36f9b4f5cd24835aec3f108322222a42020-11-25T02:49:18ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652017-06-0164225526910.1515/saeb-2017-0017saeb-2017-0017Working Capital Management Policies and Returns of Listed Manufacturing Firms in GhanaAdam Anokye M.0Quansah Edward1Kawor Seyram2School of Business, University of Cape Coast, Cape Coast, GhanaDepartment of Finance, University of Cape Coast, Cape Coast, GhanaDepartment of Finance, University of Cape Coast, Cape Coast, GhanaThis study sought to determine the effects aggressive/conservative current asset investment and financing policies have on firms′ return for six manufacturing firms listed at Ghana Stock Exchange for a period of 2000-2013. Data were obtained from the annual reports of the firms and the Ghana Stock Exchange. The study adopted longitudinal explanatory non-experimental research design applied to dynamic panel ARDL framework in analyzing the data. The results revealed that the current asset investment and financing policies have highly significant positive effects on returns to equity holders in the long-run. The empirical evidence suggests that conservative current asset investment policies increase firms return while conservative financing policies yields negative returns. The study therefore would enable finance managers to be able to fashion out the appropriate working capital management policies. A firm pursuing conservative current asset investment policy should balance it with aggressive current asset financing policy in order to enhance profitability and create value for their investors.http://www.degruyter.com/view/j/saeb.2017.64.issue-2/saeb-2017-0017/saeb-2017-0017.xml?format=INTaggressive/conservativecurrent asset investment policiescurrent asset financing policiespanel ARDL |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Adam Anokye M. Quansah Edward Kawor Seyram |
spellingShingle |
Adam Anokye M. Quansah Edward Kawor Seyram Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana Scientific Annals of Economics and Business aggressive/conservative current asset investment policies current asset financing policies panel ARDL |
author_facet |
Adam Anokye M. Quansah Edward Kawor Seyram |
author_sort |
Adam Anokye M. |
title |
Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana |
title_short |
Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana |
title_full |
Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana |
title_fullStr |
Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana |
title_full_unstemmed |
Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana |
title_sort |
working capital management policies and returns of listed manufacturing firms in ghana |
publisher |
Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house |
series |
Scientific Annals of Economics and Business |
issn |
2501-3165 |
publishDate |
2017-06-01 |
description |
This study sought to determine the effects aggressive/conservative current asset investment and financing policies have on firms′ return for six manufacturing firms listed at Ghana Stock Exchange for a period of 2000-2013. Data were obtained from the annual reports of the firms and the Ghana Stock Exchange. The study adopted longitudinal explanatory non-experimental research design applied to dynamic panel ARDL framework in analyzing the data. The results revealed that the current asset investment and financing policies have highly significant positive effects on returns to equity holders in the long-run. The empirical evidence suggests that conservative current asset investment policies increase firms return while conservative financing policies yields negative returns. The study therefore would enable finance managers to be able to fashion out the appropriate working capital management policies. A firm pursuing conservative current asset investment policy should balance it with aggressive current asset financing policy in order to enhance profitability and create value for their investors. |
topic |
aggressive/conservative current asset investment policies current asset financing policies panel ARDL |
url |
http://www.degruyter.com/view/j/saeb.2017.64.issue-2/saeb-2017-0017/saeb-2017-0017.xml?format=INT |
work_keys_str_mv |
AT adamanokyem workingcapitalmanagementpoliciesandreturnsoflistedmanufacturingfirmsinghana AT quansahedward workingcapitalmanagementpoliciesandreturnsoflistedmanufacturingfirmsinghana AT kaworseyram workingcapitalmanagementpoliciesandreturnsoflistedmanufacturingfirmsinghana |
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