Effect Of Working Capital Management On The Performance Of Commercial Banks In Nigeria (A Study Of United Bank For Africa)
ABSTRACT
Management of working capital refers to management of current assets and current
liabilities. Firms may have an optimal level of working capital that maximizes their value.
Prior evidence has determined the relatiOnship between working capital and performance.
Thus, this study examined the effect of working capital management on the performance of
commercial banks by using audited annual jInancial statement for the period of2007 — 2015.
The proxies used to measure working capital management were Current Assets/Total Assets
and Current Liabilities/Total Assets as independent variables while that of dependent
variables were; Return of Equity (ROE,), Return of asset (RCA) and Net Profit Margin
(NPM). Four theories which include Quantity Theory of Money, Keynesian Theory of Money,
Barumol Inventory Model and the Modern Quantity Theory were used to support working
capital. The secondary source of data was used to extract data from financial statement.
Multiple regression models were used in the study and the data obtained were tabulated and
statistically analyzed using the Statistical Package for the Social Sciences (SPSS) Version.
The result revealed that working capital management positively or negatively affects the
performance of United Bank for Africa. The researcher also recommends that the united bank
of Africa should keep up to the same standard of working capital incmnageinent, as ii has
ensured their success in the past years.
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ONUOHA, I (2021). Effect Of Working Capital Management On The Performance Of Commercial Banks In Nigeria (A Study Of United Bank For Africa). Repository.mouau.edu.ng: Retrieved Nov 25, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-united-bank-for-africa-7-2
IKECHUKWU, ONUOHA. "Effect Of Working Capital Management On The Performance Of Commercial Banks In Nigeria (A Study Of United Bank For Africa)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 09 Jun. 2021, https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-united-bank-for-africa-7-2. Accessed 25 Nov. 2024.
IKECHUKWU, ONUOHA. "Effect Of Working Capital Management On The Performance Of Commercial Banks In Nigeria (A Study Of United Bank For Africa)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 09 Jun. 2021. Web. 25 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-united-bank-for-africa-7-2 >.
IKECHUKWU, ONUOHA. "Effect Of Working Capital Management On The Performance Of Commercial Banks In Nigeria (A Study Of United Bank For Africa)" Repository.mouau.edu.ng (2021). Accessed 25 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-working-capital-management-on-the-performance-of-commercial-banks-in-nigeria-a-study-of-united-bank-for-africa-7-2