“Working Capital Management and Firms Financial Performance of Oil Companies in Nigeria”

Abstract

The research examined the connection amid Working Capital Management (WCM) in addition to Financial Performance of Oil companies in Nigeria. The Quasi-Experimental design was employed. The hypotheses were tested by using the Pearson Product Moment Correlation (PPMC). Data analysis results point to that of a progressive and perfectly substantial relationship amongst investing and financing rules and Return on Assets (ROA) exists; a neutral and minor relationship amid both financing and investing policies and earnings per share (EPS) exists. Furthermore, there is an insignificant but undesirable relationship amongst investing and financing rules and return on equity (ROE). Conclusively, WCM impacts performance of Nigerian firms primarily from the domain of ROA. It is recommended amongst others that the comprehensive appraisal of fiscal performance trends and WCM framework; Firms in the sector should establish adequate benchmarks of working assets components in order for emerging obligations to be met adequately.