Working Capital Management and Firm Value: Evidence from Listed Non-Financial Firms in Nigeria

This study examined the effect of working capital management on the firm value of non financial firms in Nigeria using the enterprise value multiple which was measured as enterprise value scaled by EBITDA as the indicator of firm value and extracted panel data from audited financial statements of sampled thirty-three non-financial firms listed on the Nigerian Exchange Group (NGX) Plc from 2012 to 2021. The results of the static panel least square and the panel fixed effect model estimation techniques revealed that all the WCM components have a significant effect on the firm value of non-financial firms in Nigeria which implies that WCM is highly essential for improved firm value. We, therefore, recommend that non-financial firms in Nigeria should adopt conservative account payable management strategies that will enable quick settlement of short-term obligations when they fall due. They should also adopt liberal account receivable management strategies that will not endanger their liquidity and cash flow