Working Capital Management and Firm Value: An Empirical Study of Agricultural Firms in Nigeria

Abstract

This study determines the impact of working capital control on firm price of agricultural corporations in Nigeria. Inventory holding, account receivable period, account payable period were used for independent variables, while Tobin q was used for firm value. The study employed Ex Post Facto research design. Data were generated from audited accounts of agricultural corporations in Nigeria. The hypotheses were tested with multiple regression analysis, and the study found that inventory holding has a negative significant relationship with firm value of agricultural firms in Nigeria, account receivable period has a positive significant influence on firm value of agricultural firms in Nigeria, also that account payable period has a negative significant influence on firm value of agricultural firms in Nigeria.  Based on the result, the study recommended that Managers need to make sure rapid series of sale receivables from borrowers; the economic supervisor have to give you credit score phrases that ensure the price range owed are easily recovered and decrease incidence of awful and irrecoverable money owed.