Date of Conferral







Craig Barton


Many Nigerian manufacturing firms have faced working capital management anomalies due to concerns of balancing profitability and liquidity that led to most business failures. To remain competitive corporate managers and business leaders of manufacturing firms need to operate optimally in working capital by understanding the association between working capital management (WCM), working capital strategy (WCS), and performance. Using the cash conversion cycle theory as the linchpin, the purpose of this quantitative correlational study was to examine the relationship between WCM, WCS, and performance. The study utilized secondary financial data spanning 2014 to 2018 from a random sample of 54 publicly traded Nigerian manufacturing firms. The regression results consisting of three models were statistically significant in predicting performance as it relates to economic value added (EVA), return on capital employed (ROCE), and Tobin’s Q (TQ). The regression results revealed that WCM and WCS were significant predictors of EVA, (F (5, 48) = 2.672, p ˂ .05, R2 = .218; ROCE, (F (5, 48) = 7.143, p ˂ .001, R2 = .427; and TQ, (F (5, 48) = 25.920, p ˂ .001, R2 = .730. Overall, the findings showed that WCM and WCS significantly predicted performance (p ˂ .05). Corporate managers and business leaders may integrate findings to enhance employee knowledge in working capital efficiency in the overall corporate strategy for the firm's profitability and sustainability. Profitable businesses may prepare dedicated corporate social responsibility budgets to cater to community-based infrastructures. These include roads, schools, and hospitals, amongst others, to improve the populace's living conditions, thereby maintaining peace and order in society.