Corporate Governance and Working Capital Management of Listed Manufacturing Firms in Nigeria

Winiefred Zillie Bala, Lateef Olumide Mustapha and Latifat Abdulssalam Abdulfatah
Additional contact information
Winiefred Zillie Bala: Department of Accounting, Nigerian Defence Academy
Lateef Olumide Mustapha: Department of Accounting, Nigerian Defence Academy
Latifat Abdulssalam Abdulfatah: Department of Accounting, Nigerian Defence Academy

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 11, 4771-4784

Abstract: This study examined the effect of corporate governance, specifically board size, board independence and board meetings, on the working capital management of listed manufacturing firms in Nigeria. The study covered the period from 2008 to 2022 and employed an ex-post facto research design, with a population consisting of 46 listed manufacturing firms on the Nigerian Exchange. A sample of 20 firms was selected using a filtering technique. Multiple linear regression analysis was used. The findings revealed that larger board sizes are associated with more efficient working capital management, as indicated by a shorter cash conversion cycle. Board independence was found to have a negative but insignificant effect on working capital management efficiency. Also, more frequent board meetings were related to less efficient working capital management, resulting in a longer cash conversion cycle. The study concluded that larger board sizes are associated with more efficient working capital management. On the other hand, excessive board meetings might only lead to inefficiencies or distractions that hinder effective working capital management. The study further concluded that the effect of board independence on working capital management is trivial as the presence of the independent directors do not significantly affect working capital management of sampled firms. The study recommended that increasing board size may enhance a firm's ability to manage its working capital effectively. Furthermore, the study recommended that firms should also strategically plan board meetings to ensure they are productive and focused on key issues.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... -4784-202512_pdf.pdf (application/pdf)
https://www.rsisinternational.org/journals/ijriss/ ... ng-firms-in-nigeria/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:9:y:2025:i:11:p:4771-4784

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().