Exploring the dynamics of firm attributes on the management of working capital

Abstract

Working capital (WCM) is an important components of financial management which focuses  both on short-term assets and liabilities of a company. This study explores how profitability, company growth, and age of the company influences the level of working capital. The study uses data from agricultural companies listed on the Nigerian Exchange Group (NGX). Using pooled logit regression, with robust standard error, the result indicates that the three explanatory variables positively and significantly influence working capital level of the sample companies. Hence, these variables are important determinants of working capital level in the agricultural sector of the NGX. Management of these companies  should continue work towards their targeted profit to maintain the best working capital level.