Work

Working Capital Management and Financial Performance of Quoted Deposit Money Banks: Moderating Effect of Firm Size

Year: 2025

Type: article

Abstract: This paper investigated the moderating effect of firm size on the relationship between Working Capital Management (WCM) and the Financial Performance of Quoted Deposit Money Banks (DMBs) in Nigeria from 2005–2022. Return on Assets was used as a proxy for Financial Performance, while Current Ratio, Cash Ratio and Loan-to-Deposit Ratio were used as proxies for Working Capital Management. Mixed variable regression models were developed using Return on Assets as the dependent variables while Cash Ratio, Current Ratio, Loan- to-Deposit Ratio and Dummy Variables representing firm sizes as explanatory variables. The regression equations showed that medium-sized banks consistently performed optimally compared to large and small-sized banks. This finding underscores the need to investigate components of the Nigerian banking environment and practices that adversely affect the performance of large and small banks.

Source: African Journal of Accounting and Financial Research

DOI: 10.52589/ajafr-ocuzrruq

Authors: Ifurueze, S. M., Nwadialor, E., Nwankwo, P. N., Nwankwo, C. H.

Institutions: Chukwuemeka Odumegwu Ojukwu University, Nnamdi Azikiwe University, Chukwuemeka Odumegwu Ojukwu University, Igbariam Campus

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

OpenAlex ID: W4408201825