International Journal of Economics, Finance and Management Sciences

2014; 2(3): 212-219

Published online May 30, 2014 (http://wwws!ien!epublishin""#oup!o$/%/i%e&$)
doi: 1011'4(/%i%e&$2014020312


The relationship between working capital management
policy and financial performance of companies quoted at
airobi securities e!change, "enya
Winnie Mokeira Nyabuti
1
, Ondiek Benedict Alala
2

1
)!hool o& *u$an +esou#!e ,e-elop$ent, .o$o /enyatta 0ni-e#sity o& 1"#i!ultu#e and 2e!hnolo"y, 3ai#obi, /enya
2
)!hool o& 1!!ountin" and 4inan!e, 0ni-e#sity o& /abian"a, /e#i!ho, /enya
Email address:
win$o59(6"$ail!o$ (7 M 3yabuti), ondie5alala6yahoo!o$ (8 9 1lala)
To cite this article:
7innie Mo5ei#a 3yabuti, 8ndie5 9enedi!t 1lala 2he +elationship between 7o#5in" :apital Mana"e$ent Poli!y and 4inan!ial
Pe#&o#$an!e o& :o$panies ;uoted at 3ai#obi )e!u#ities <=!han"e, /enya International Journal of Economics, Finance and
Management Sciences. >ol 2, 3o 3, 2014, pp 212-219 doi: 1011'4(/%i%e&$2014020312

Abstract: 7o#5in" !apital $ana"e$ent and p#o&itability #elationship has been e=plo#ed by $any #esea#!he#s 2he
study?s #esea#!h ob%e!ti-es in!lude: 2o &ind out the #elationship between wo#5in" !apital $ana"e$ent poli!y and &inan!ial
pe#&o#$an!e o& !o$panies @uoted at 3)<, to &ind out i& e&&i!ient 1""#essi-e An-est$ent Poli!y has any e&&e!t on the +81
o& !o$panies @uoted at 3)<, to establish i& 1""#essi-e 4inan!in" Poli!y in&luen!es +81 o& the &i#$ at 3)<, to establish
the in&luen!e o& wo#5in" !apital $ana"e$ent poli!y on &inan!ial pe#&o#$an!e 2he population o& the study in!ludes ten
!o$panies listed at the 3)< &o# &i-e yea#s &#o$ 200( to 2012 4#o$ the 3ai#obi )e!u#ities <=!han"e hand boo5 (2012)
si=ty two &i#$s a#e listed, d#awn &#o$ the a"#i!ultu#e se!to#, :o$$e#!ial and se#-i!es, 4inan!ial and An-est$ents,
Andust#ial and allied )e!to#, 1lte#nati-e An-est$ent Ma#5et )e"$ent 4i#$s @uoted at 3)< a#e p#e&e##ed due to the
a-ailability and #eliability o& the &inan!ial state$ents in that they a#e sub%e!t to $andato#y audits by #e!o"nised audit &i#$s
2he study utilised se!onda#y data obtained &#o$ the published &inan!ial state$ents whi!h we#e #eadily a-ailable at the 3)<
and the :M1 lib#a#ies 2he data !olle!ted in!luded in&o#$ation on assets, liabilities and #e-enue le-els &o# the pe#iod 200(
to 2012, usin" the annual #epo#ts published by the abo-e $entioned !o$panies whi!h ha-e been listed by 3)< 4u#the# the
data was obtained &#o$ the annual handboo5 published by 3)<2he study !on!ludes that the#e is an e=istin" #elationship
between wo#5in" !apital $ana"e$ent poli!y and &inan!ial pe#&o#$an!e o& !o$panies @uoted at 3)< 2he dependent
-a#iable whi!h was +81 is in&luen!ed by the independent -a#iables whi!h a#e 1AP and 14P by 1B2C 2his $eans that
1B2C o& the !han"es in depended -a#iable (+81) !an be e=plained by e=planato#y -a#iables while (2(C !annot be
e=plained by e=planato#y -a#iables hen!e e##o# te#$
Keyords: 7o#5in" :apital Mana"e$ent Poli!y, 4inan!ial Pe#&o#$an!e, 1""#essi-e 4inan!in" Poli!y,
1""#essi-e An-est$ent Poli!y and +etu#n on 1ssets

1! "ntroduction
7o#5in" !apital $ana"e$ent is de&ined as the ability o&
an o#"aniDation to &und sho#t te#$ assets and sho#t te#$
liabilities (*a##is, 200E) Mana"e$ent o& wo#5in" !apital
needs !a#e&ul attention sin!e it plays an i$po#tant #ole in
dete#$ination o& &i#$s? &inan!ial pe#&o#$an!e, li@uidity and
#is5 as well as &i#$s -alue ()$ith ,19(0)F#eate#
in-est$ent in !u##ent assets leads to lowe# #is5 in settlin"
sho#t te#$ obli"ations while leadin" to lowe# p#o&itability
)pe!i&i!ally wo#5in" !apital in-est$ent in-ol-es a t#adeo&&
between p#o&itability and #is5 ,e!isions that tend to
in!#ease p#o&itability tend to in!#ease #is5 and !on-e#sely
de!isions that &o!us on #is5 #edu!tion will tend to #edu!e
potential p#o&itability
<-e#y business #e@ui#es wo#5in" !apital &o# its su#-i-al
7o#5in" !apital is a -ital pa#t o& business in-est$ent whi!h
is essential &o# !ontinuous business ope#ations At is
#e@ui#ed by a &i#$ to $aintain its li@uidity, sol-en!y and
p#o&itability (Mu5hopadhyay, 2004) 2he i$po#tan!e o&
$ana"in" wo#5in" !apital o& a business e&&i!iently !annot
be denied (4ilbe!5G /#ue"e#, 200E) 7o#5in" !apital
$ana"e$ent e=pli!itly i$pa!ts both the p#o&itability and
le-el o& desi#ed li@uidity o& a business (+ahe$anG3as#,
200B) A& a &i#$ will in-est hea-ily in wo#5in" !apital that is
Ante#national .ou#nal o& <!ono$i!s, 4inan!e and Mana"e$ent )!ien!es 2014; 2(3): 212-219 213

$o#e than it needs, then the p#o&its whi!h !an be "ene#ated
by in-estin" these #esou#!es in &i=ed o# lon" te#$ assets
will be di$inished Mo#eo-e# the &i#$ will ha-e to endu#e
the !ost o& sto#in" in-ento#y &o# lon"e# pe#iods as well as
the !ost o& handlin" e=!essi-e in-ento#y (1#nold, 200()
8n the othe# hand, i& a &i#$ in-ests hea-ily on &i=ed
assets to "ene#ate p#o&its by ne"le!tin" its sho#t-te#$
!apital needs, then it is @uite possible that it $ay ha-e to
&a!e ban5#upt!y be!ause o& insu&&i!ient &unds 2he
p#o&itability as well as ade@uate le-el o& li@uidity is
#e@ui#ed to be $aintained &o# the su#-i-al o& a business )o
i& a &i#$ will not pay su&&i!ient attention to its wo#5in"
!apital $ana"e$ent, then it is @uite possible that the &i#$
would ha-e to &a!e ban5#upt!y (/a#"a#G 9lu$enthal,
1994) )ho#ta"e o& wo#5in" !apital is no#$ally att#ibuted as
a $a%o# !ause o& &ailu#e o& $any s$all businesses in
-a#ious de-elopin" and de-eloped !ount#ies ( +a&use,
(199') <&&e!ti-e $ana"e$ent o& wo#5in" !apital de!#eases
the need &o# lendin" &unds to pay ba!5 the sho#t te#$ debts
o& the &i#$
2he#e a#e di&&e#ent app#oa!hes &o# the $ana"e$ent o&
wo#5in" !apital 2wo basi! poli!ies o& wo#5in" !apital
$ana"e$ent a#e na$ely a""#essi-e wo#5in" !apital
$ana"e$ent poli!y and !onse#-ati-e wo#5in" !apital
$ana"e$ent poli!y 1n a""#essi-e in-est$ent poli!y with
hi"h le-els o& &i=ed assets and low in-est$ent in !u##ent
assets $ay "ene#ate $o#e p#o&its &o# a &i#$ *owe-e# it
also a!!o$panies a #is5 o& insu&&i!ient &unds &o# daily
ope#ations and &o# pay$ent o& sho#t te#$ debts
1 !onse#-ati-e in-est$ent poli!y is opposite to it with
less in-est$ent in &i=ed assets and $o#e in !u##ent assets
4o# &inan!in" o& wo#5in" !apital a""#essi-e poli!y i$plies
that !u##ent liabilities a#e $aintained at a "#eate# po#tion as
!o$pa#ed to lon" te#$ debts *i"h le-el o& !u##ent
liabilities #e@ui#es $o#e #esou#!es to be in li@uid &o#$ to
pay ba!5 debts ea#lie# 9ut !u##ent pay outs bea# less #ate o&
inte#est and hen!e !an !ause $o#e sa-in"s An !onse#-ati-e
wo#5in" !apital &inan!in" poli!y a "#eate# po#tion o& lon"
te#$ debts is used in !ont#ast to !u##ent liabilities
7o#5in" !apital $ana"e$ent and p#o&itability !e#tainly
ha-e so$e #elation with ea!h othe# Mu!h #esea#!h wo#5 is
a-ailable on this #elationship thou"h the sa$e has not been
e=plo#ed in /enya 7o#5in" !apital is -e#y i$po#tant pa#t
o& business a!ti-ities o& any &i#$
2he #est o& the study is based on an analysis o& p#e-ious
lite#atu#e whi!h p#o-ides the theo#eti!al ba!5"#ound &o# the
study, #esea#!h $ethodolo"y and sa$ple siDe
1.1. Concept of Working Capital Management
4i#$s &a!e a nu$be# o& i$po#tant de!isions in thei#
ope#ations and one o& these i$po#tant de!isions !on!e#ns
the e&&i!ient $ana"e$ent o& li@uidity 1!!o#din" to Fupta
(2002) wo#5in" !apital $ana"e$ent p#o-ides the &i#$ with
in&o#$ation on the li@uidity needed to ope#ate e&&i!iently
Fit$an (2000) des!#ibes wo#5in" !apital $ana"e$ent as
the #e"ulation, ad%ust$ent, and !ont#ol o& the balan!e o&
!u##ent assets and !u##ent liabilities o& a &i#$ su!h that
$atu#in" obli"ations a#e $et, and the &i=ed assets a#e
p#ope#ly se#-i!ed Pandey (200B) de&ines !u##ent assets as
those assets whi!h in the o#dina#y a!ti-ities o& the &i#$ will
be !on-e#ted into !ash within one yea# and !u##ent
liabilities as those liabilities whi!h a#e intended, at thei#
in!eption to be paid in the o#dina#y !ou#se o& business in a
yea#
,eloo& (2003) asse#ts that the $ana"e$ent o& wo#5in"
!apital ne!essitates sho#t te#$ de!isions in wo#5in" !apital
and &inan!in" o& all aspe!ts o& both &i#$?s sho#t te#$ assets
and liabilities *e &u#the# !ontends that the $ain ob%e!ti-e
is to as!e#tain that the &i#$ has the ability to !ontinue
ope#atin" with su&&i!ient !ash &low &o# pay$ent o& both
$atu#in" sho#t te#$ debt and i$pendin" ope#ational
e=penses Ats thus in-ol-es $ultiple !#u!ial de!isions whi!h
in-ol-es $ana"in" a!!ount payables and a!!ount
#e!ei-ables, p#ese#-in" a !e#tain le-el o& in-ento#ies and
the in-est$ent o& a!!essible !ash
1 &i#$ !an eithe# adopt an a""#essi-e wo#5in" !apital
$ana"e$ent poli!y o# a !onse#-ati-e wo#5in" !apital
$ana"e$ent poli!y 1!!o#din" to 3aDi# and 1&Da (200() an
a""#essi-e An-est$ent Poli!y is an app#oa!h that #esults in
$ini$al le-el o& in-est$ent in !u##ent assets -e#sus &i=ed
assets 2his has the e=pe!tation o& hi"he# p#o&itability but
"#eate# li@uidity #is5 1s an alte#nati-e, a $o#e
!onse#-ati-e poli!y pla!es a "#eate# p#opo#tion o& !apital in
li@uid assets, but at the sa!#i&i!e o& so$e p#o&itability 2o
$easu#e the de"#ee o& a""#essi-eness the !u##ent asset to
total asset #atio is used, with a lowe# #atio $eanin" a
#elati-ely $o#e a""#essi-e poli!y
1!!o#din" to Pandey (200B) an a""#essi-e &inan!in"
poli!ies utiliDe hi"he# le-els o& no#$ally lowe# !ost sho#t-
te#$ debt and less lon"-te#$ !apital 1lthou"h lowe#in"
!apital !osts, this in!#eases the #is5 o& a sho#t-te#$ li@uidity
p#oble$ 1 $o#e !onse#-ati-e poli!y uses hi"he# !ost
!apital but postpones the p#in!ipal #epay$ent o& debt, o#
a-oids it enti#ely by usin" e@uity 2he total !u##ent liability
to total asset #atio is used to $easu#e the de"#ee o&
a""#essi-e &inan!in" poli!y, with a hi"h #atio bein"
#elati-ely $o#e a""#essi-e
1.2. Financial Performance
4inan!ial pe#&o#$an!e is a sub%e!ti-e $easu#e o& how
well a &i#$ !an use assets &#o$ its p#i$a#y $ode o&
business and "ene#ate #e-enues 2he te#$ is also used as a
"ene#al $easu#e o& a &i#$?s o-e#all &inan!ial health o-e# a
"i-en pe#iod o& ti$e and !an be used to !o$pa#e si$ila#
&i#$s a!#oss the sa$e indust#y o# to !o$pa#e indust#ies o#
se!to#s in a""#ession 4inan!ial pe#&o#$an!e !an be
$easu#ed by the #ate o& #etu#n on in-est$ent 2he
$ana"e$ent o& a &i#$ wo#5in" !apital a&&e!ts its
pe#&o#$an!e +i!!i and >ito (2000) a#"ues that the basi!
pu#pose o& $ana"in" wo#5in" !apital is !ont#ollin" o&
!u##ent &inan!ial #esou#!es o& a &i#$ in su!h a way that a
balan!e is !#eated between p#o&itability o& the &i#$ and #is5
asso!iated with that p#o&itability *oldin" hi"h le-els o&
!u##ent assets espe!ially in &o#$ o& $a#5etable se!u#ities,
214 7innie Mo5ei#a 3yabuti and 8ndie5 9enedi!t 1lala: 2he +elationship between 7o#5in" :apital Mana"e$ent Poli!y and
4inan!ial Pe#&o#$an!e o& :o$panies ;uoted at 3ai#obi )e!u#ities <=!han"e, /enya
a!!ount #e!ei-ables and in-ento#y $ay #ende# the &i#$
in!apable o& payin" its sho#t te#$ obli"ation when they &all
due 1lso hi"h le-els o& sho#t liabilities in!#ease !han!es o&
ban5#upt!y
2he pe#&o#$an!e o& a &i#$ !an be $easu#ed in se-e#al
ways 9#i"ha$ and Fapens5i (1999) a#"ue that the
$easu#es o& p#o&itability !an eithe# be boo5 -alue based o#
$a#5et -alue based 2hey !ontend that a!!ountin" #atios
su!h as 2obin?s ;, +8< and +81 !an be used to $easu#e
&i#$?s pe#&o#$an!e4alope and 1%ilo#e (2009), 9iwott
(2011), /ithii (200(), ,an (2010) and 1&Da and3asi# (200B)
used (+81) 1@uino (2010) used the #atio o& net in!o$e
a&te# ta=es to sto!5holde#sH e@uity (+8<)
1.3. Companies Quoted at NSE
3ai#obi se!u#ities <=!han"e is one o& the $ost #obust
:apital $a#5ets in 1&#i!a 3)< sta#ted in the 1920Hs when
the !ount#y was still a 9#itish !olony 3)< has unde#"one
nu$e#ous t#ans&o#$ations o-e# the yea#s to enhan!e its
e&&e!ti-eness and adapt to !han"es in the <!ono$i!
<n-i#on$ent, An-esto#s inte#est and le-e#a"e on te!hnolo"y
3)< has st#in"ent #ules and #e"ulations on how a!!o$pany
is to be enlisted on the sto!5 $a#5et ;uoted !o$panies a#e
di-ided into di&&e#ent se!to#s, na$ely 1"#i!ultu#al,
:o$$e#!ial and se#-i!es, 2ele!o$$uni!ation and
2e!hnolo"y, 1uto$obile and 1!!esso#ies, 9an5in",
Ansu#an!e, An-est$ent, Manu&a!tu#in" and 1llied,
!onst#u!tion and <ne#"y ,i&&e#ent !o$panies ;uoted at the
3)< ha-e adopted di&&e#ent wo#5in" !apital $ana"e$ent
poli!ies; this study ai$s to dete#$ine how these poli!ies
ha-e a&&e!ted thei# &inan!ial pe#&o#$an!e
2! Em#irical $e%ie
2he sub%e!t o& wo#5in" !apital $ana"e$ent has been
e=plo#ed in the dis!ipline o& &inan!e *owe-e#, -e#y &ew
studies ha-e been !ondu!ted in /enya to add#ess whethe#
the de"#ee o& a""#essi-eness o# !onse#-ati-eness o&
wo#5in" !apital $ana"e$ent poli!ies a&&e!ts p#o&itability
)alawu (200') in-esti"ated &i&teen di-e#se indust#ial
"#oups o-e# an e=tended pe#iod to establish the #elationship
between a""#essi-e and !onse#-ati-e wo#5in" !apital
p#a!ti!es *is #esults st#on"ly show that the indust#ies had
si"ni&i!antly di&&e#ent !u##ent asset $ana"e$ent poli!ies
1dditionally the #elati-e indust#y #an5in" o& the a""#essi-e
o# !onse#-ati-e asset poli!ies e=hibited #e$a#5able stability
o-e# ti$e At is e-ident that the#e is a si"ni&i!ant ne"ati-e
!o##elation between indust#y asset and liability poli!ies
+elati-ely a""#essi-e asset $ana"e$ent see$s balan!ed by
#elati-ely !onse#-ati-e wo#5in" !apital &inan!e
$ana"e$ent 4u#the#$o#e he e=plains that a &i#$ in
de!idin" its wo#5in" !apital poli!ies adopted in a pa#ti!ula#
indust#y in whi!h it ope#ates and a &i#$ pu#suin" an
a""#essi-e wo#5in" !apital in-est$ent poli!y should $at!h
it with a !onse#-ati-e wo#5in" !apital &inan!in" poli!y
2his is i$po#tant to $iti"ate the #is5 bein" &a!ed unde#
a""#essi-e wo#5in" !apital in-est$ent poli!ies by sa&ety
in-ol-ed unde# !onse#-ati-e wo#5in" !apital &inan!in"
poli!y
*owe-e#, 7ein#aub and >iss!he# (199() ha-e dis!ussed
the issues o& a""#essi-e and !onse#-ati-e wo#5in" !apital
$ana"e$ent poli!ies by usin" @ua#te#ly data &o# a pe#iod o&
19(4 to 1993 o& 0) &i#$s 2he #esea#!he#s ha-e e=a$ined
ten di-e#se indust#y "#oups to study the #elati-e #elationship
between thei# a""#essi-e, !onse#-ati-e wo#5in" !apital
poli!ies and they ha-e !on!luded that the indust#ies ha-e
distin!ti-e and si"ni&i!antly di&&e#ent wo#5in" !apital
$ana"e$ent poli!ies o-e#ti$e
3aDi# and 1&Da (200B) studied the i$pa!t o& di&&e#ent
types o& wo#5in" !apital $ana"e$ent poli!ies on &inan!ial
pe#&o#$an!e o& &i#$s in di&&e#ent se!to#s in Pa5istan 4o#
this they used a sa$ple o& 2'3 non-&inan!ial &i#$s
belon"in" to 1B di&&e#ent se!to#s listed at /)< &#o$199( to
2003 2he se!onda#y data was !olle!ted &#o$ the &inan!ial
#epo#ts o& sele!ted !o$panies and also &#o$ the
publi!ations o& )tate 9an5 o& Pa5istan 4o# the
$easu#e$ent o& the de"#ee o& a""#essi-eness they used
!u##ent liabilities to total assets #atio and !u##ent assets to
total assets #atios 2o lo!ate the i$pa!t o& these poli!ies on
the pe#&o#$an!e o& &i#$s they used +etu#n on <@uity (+8<)
and +etu#n on 1ssets (+81) +esults we#e &ound by usin"
#e"#ession analysis 2hey &ound an in-e#se #elationship
between de"#ee o& a""#essi-eness o& these poli!ies and
p#o&itability
1nothe# i$po#tant study !on&i#$s the #esults o& 1&Da and
3aDi# (200B) !ondu!ted by Mian ) and 2alat (2009) ha-e
shown that the ne"ati-e #elationship between the
p#o&itability $easu#es o& the &i#$ and the de"#ee o&
a""#essi-eness o& wo#5in" !apital $ana"e$ent poli!ies by
analyDin" the 204 Pa5istani &i#$s listed unde# si=teen
indust#ial "#oups in the /a#a!hi )to!5 <=!han"e (/)<)
2he data was analyDed &o# the pe#iod (199(-200E) 2he
&indin" says that &i#$s with $o#e a""#essi-e wo#5in"
!apital poli!y $ay not be able to "ene#ate $o#e p#o&it
p#o-in" the ne"ati-e #elationship o& wo#5in" !apital
$ana"e$ent and p#o&itability
Pandey and Pa#e#a (199B) p#o-ided an e$pi#i!al
e-iden!e o& wo#5in" !apital $ana"e$ent poli!ies and
p#a!ti!es in the p#i-ate se!to# $anu&a!tu#in" !o$panies in
)#i Ian5a 2he in&o#$ation and data &o# the study we#e
"athe#ed th#ou"h @uestionnai#es and inte#-iews with !hie&
&inan!ial o&&i!e#s o& a sa$ple o& $anu&a!tu#in" !o$panies
listed on the :olo$bo )to!5 <=!han"e 2hey &ound that
$ost !o$panies in )#i Ian5a ha-e in&o#$al wo#5in" !apital
poli!y and !o$pany siDe has an in&luen!e on the o-e#all
wo#5in" !apital poli!y (&o#$al o# in&o#$al) and app#oa!h
(!onse#-ati-e, $ode#ate o# a""#essi-e) Mo#eo-e#,
!o$pany p#o&itability has an e&&e!t on the $ethods o&
wo#5in" !apital plannin" and !ont#ol
2he study o& Moha$ad and )aad (2010) was based on
se!onda#y data o& 1B2 &i#$s o& Malaysia 2hey e-aluated
the i$pa!t o& -a#ious !o$ponents o& wo#5in" !apital on
p#o&itability and $a#5et -alue o& the &i#$s 2he study
Ante#national .ou#nal o& <!ono$i!s, 4inan!e and Mana"e$ent )!ien!es 2014; 2(3): 212-219 21E

!o-e#ed a ti$e span o& &i-e yea#s &#o$ 2003 to 200B 4o#
this pu#pose they used di&&e#ent wo#5in" !apital
!o$ponents na$ely !ash !on-e#sion !y!les (:::), debt
#atio (,+), !u##ent assets to total assets #atio (:121+),
!u##ent liabilities to total assets #atio (:I21+) and !u##ent
#atio (:+) 2o see the e&&e!t o& these wo#5in" !apital
!o$ponents on &inan!ial pe#&o#$an!e they used 2obin?s ;
(2;), #etu#n on in-ested !apital (+8A:) and #etu#n on
assets (+81) as a $easu#e$ent o& &inan!ial pe#&o#$an!e o&
the sele!ted &i#$s 2o dedu!e the #esults they used
!o##elations and $ultiple #e"#ession analysis 2he #esults
showed that the#e e=ists an in-e#se #elationship between
di&&e#ent wo#5in" !apital !o$ponents and pe#&o#$an!e o&
&i#$s
)athya$oo#thi (2002) &o!used on "ood !o#po#ate
"o-e#nan!e and in tu#n e&&e!ti-e $ana"e$ent o& business
assets *e analyDed sele!ted :o-ope#ati-es in 9otswana &o#
the pe#iod o& 1993-199B and obse#-ed that $o#e e$phasis
is "i-en to in-est$ent in &i=ed assets both in $ana"e$ent
a#ea and #esea#!h *e also noted that that e&&e!ti-e
$ana"e$ent wo#5in" !apital has been #e!ei-in" little
attention and yieldin" $o#e si"ni&i!ant #esults and
!on!luded that these &i#$s &ollowed an a""#essi-e app#oa!h
du#in" the whole &ou#-yea# study pe#iod
8!hien" (200') on his studies on the e&&e!ts o& the
#elationship between wo#5in" !apital o& &i#$s listed at the
3ai#obi )to!5 <=!han"e and the e!ono$i! a!ti-ity in
/enya, &inds that the li@uidity o& the &i#$s, $easu#ed by the
!u##ent and @ui!5 #atios, in!#eases with e!ono$i!
e=pansion and de!#eases du#in" e!ono$i! showdowns *e
howe-e# says that the li@uidity positions #ea!ted di&&e#ently
to -a#ious e!ono$i! indi!ato#s su!h as in&lation and
lendin" #ates 2he study showed that in&lation was not
si"ni&i!ant in a $assi-e (3C o& the &i#$s At is howe-e#
&ound that lendin" #ates indeed a&&e!t the a$ount o&
wo#5in" !apital poli!y o& a &i#$
1puoyo (2010) on his study on the #elationship between
wo#5in" !apital $ana"e$ent poli!ies and p#o&itability &o#
!o$panies @uoted at the 3)< &inds that the &inan!ial and
in-est$ent se!to# has been able to a!hie-e hi"h s!o#es on
the -a#ious !o$ponents o& wo#5in" !apital and this has
positi-e i$pa!t on p#o&itability
9iwott (2011) and ,eloo& (2003), &ound a st#on"
ne"ati-e #elationship between the $easu#es o& wo#5in"
!apital $ana"e$ent in!ludin" the a-e#a"e !olle!tion pe#iod,
in-ento#y tu#no-e# in days, the a-e#a"e pay$ent pe#iod and
!ash !on-e#sion !y!le with !o#po#ate p#o&itability
Fit$an (2000) on his study wo#5in" !apital $ana"e$ent
is !on!e#ned with the p#oble$s that a#ise in atte$ptin" to
$ana"e !u##ent assets, the !u##ent liabilities and the
#elationship that e=ists between the$ Pandey (200B)
de&ines !u##ent assets as those assets whi!h in the o#dina#y
!ou#se o& business !an be, o# will be !on-e#ted into !ash
within one yea# without unde#"oin" a di$inution in -alue
and without dis#uptin" the ope#ation o& the &i#$s <=a$ples
a#e !ash, $a#5etable se!u#ities, a!!ount #e!ei-ables and
in-ento#y 8n the othe# hand, !u##ent liabilities a#e those
liabilities whi!h a#e intended, at thei# in!eption to be paid
in the o#dina#y !ou#se o& business in a yea# out o& !u##ent
assets o# ea#nin"s o& the !on!e#n 2he basi! !u##ent
liabilities a#e a!!ount payables, bills payable, ban5
o-e#d#a&t and outstandin" e=penses
>an J*o#ne and 7a!howi!D (2004) posits that when a
business entity ta5es the de!isions #e"a#din" its !u##ent
assets and liabilities then it !an be te#$ed as wo#5in"
!apital $ana"e$ent *e de&ines wo#5in" !apital
$ana"e$ent as an a!!ountin" app#oa!h that e$phasiDe on
$aintainin" p#ope# le-els o& both !u##ent assets and !u##ent
liabilities At p#o-ides enou"h !ash that $eets sho#t-te#$
obli"ations
Ia$be#son (199E) obse#-es that wo#5in" !apital
$ana"e$ent has be!o$e one o& the $ost i$po#tant issues
in o#"aniDations whe#e $any &inan!ial e=e!uti-es st#i-e to
identi&y the basi! wo#5in" !apital d#i-e#s and the
app#op#iate le-el o& wo#5in" !apital <&&i!ient $ana"e$ent
o& wo#5in" !apital is a &unda$ental pa#t o& the o-e#all
!o#po#ate st#ate"y to !#eate the sha#eholde#s? -alue *e
su""ests that $ana"e#s should st#i-e to a!hie-e an opti$al
o# e&&i!ient le-el o& wo#5in" !apital
+ahe$anG 3as# (200B) e$phasiDes the i$po#tan!e o&
wo#5in" !apital that e-e#y business #e@ui#es wo#5in"
!apital &o# its su#-i-al 7o#5in" !apital is a -ital pa#t o&
business in-est$ent whi!h is essential &o# !ontinuous
business ope#ations At is #e@ui#ed by a &i#$ to $aintain its
li@uidity, sol-en!y and p#o&itability 4ilbe!5 and /#ue"e#
(200E) asse#t that the i$po#tan!e o& $ana"in" wo#5in"
!apital o& a business e&&i!iently !annot be denied and thus
needs to be a!!o#ded the i$po#tan!e it dese#-es
1#nold (200(& obse#-es that wo#5in" !apital
$ana"e$ent e=pli!itly i$pa!ts both the p#o&itability and
le-el o& desi#ed li@uidity o& a business A& a &i#$ will in-est
hea-ily in wo#5in" !apital, that is, $o#e than its needs, then
the p#o&its whi!h !an be "ene#ated by in-estin" these
#esou#!es in &i=ed o# lon" te#$ assets will be di$inished
Mo#eo-e# the &i#$ will ha-e to endu#e the !ost o& sto#in"
in-ento#y &o# lon"e# pe#iods as well as the !ost o& handlin"
e=!essi-e in-ento#y
1#nold (200(& &u#the# a#"ues that i& a &i#$ will in-est
hea-ily in &i=ed assets to "ene#ate p#o&its by ne"le!tin" its
sho#t-te#$ !apital needs then it is @uite possible that it $ay
ha-e to &a!e ban5#upt!y be!ause o& insu&&i!ient &unds 2he
p#o&itability as well as ade@uate le-el o& li@uidity is
#e@ui#ed to be $aintained &o# the su#-i-al o& a business, so
i& a &i#$ will not pay su&&i!ient attention to its wo#5in"
!apital $ana"e$ent, then it is @uite possible that the &i#$
would ha-e to &a!e ban5#upt!y
' (once#tual )rameork
4i"u#e 1 below p#esents s!he$ati! !on!eptual
&#a$ewo#5 o& the #elationship between wo#5in"
:apital $ana"e$ent poli!ies and &inan!ial pe#&o#$an!e
o& &i#$s
21' 7innie Mo5ei#a 3yabuti and 8ndie5 9enedi!t 1lala: 2he +elationship between 7o#5in" :apital Mana"e$ent Poli!y and
4inan!ial Pe#&o#$an!e o& :o$panies ;uoted at 3ai#obi )e!u#ities <=!han"e, /enya

Figure 1. Conceptual framework
* $esearch Ob+ecti%es
.1. !eneral "#$ecti%e
1 2o &ind out the #elationship between wo#5in" !apital
$ana"e$ent poli!y and &inan!ial pe#&o#$an!e o&
!o$panies @uoted at 3)<
.2. Specific "#$ecti%es
1 2o dete#$ine the e&&e!t o& 1""#essi-e An-est$ent
Poli!y on the +81 o& !o$panies @uoted at 3)<
2 2o establish i& 1""#essi-e 4inan!in" Poli!y
in&luen!es +81 o& the &i#$ at 3)<
3 2o establish the in&luen!e o& wo#5in" !apital
$ana"e$ent poli!y on &inan!ial pe#&o#$an!e
.3. &esearc' Questions
1 7hat is the #elationship between wo#5in" !apital
$ana"e$ent poli!y and &inan!ial pe#&o#$an!e o&
!o$panies @uoted at 3)<K
2 ,oes 1""#essi-e An-est$ent Poli!y ha-e any e&&e!t
on the +81 o& &i#$s @uoted at 3)<K
3 ,oes 1""#essi-e 4inan!in" Poli!y in&luen!e +81
o& the &i#$ at 3)<K
4 ,oes wo#5in" !apital $ana"e$ent poli!y in&luen!e
&inan!ial pe#&o#$an!eK
,! -ata Analysis
2he study sou"ht to establish the #elationship between
the de"#ee o& wo#5in" !apital $ana"e$ent poli!y and
&inan!ial pe#&o#$an!e &o# &i#$s listed at the 3)< 2he
independent -a#iable o& the study was wo#5in" !apital
$ana"e$ent poli!y 2he wo#5in" !apital $ana"e$ent
poli!y has two &a!ets, ie in-est$ent and &inan!in" poli!y
2o $easu#e the de"#ee o& a""#essi-eness o& wo#5in" !apital
in-est$ent poli!y (1AP) the &ollowin" #atio was used;
1AP L 2otal :u##ent 1ssets (2:1)/ 2otal 1ssets (21)
2he de"#ee o& a""#essi-eness in &inan!in" poli!y (14P)
will be $easu#ed by the total !u##ent liabilities to total
assets #atio 2hus;
14P L 2otal :u##ent Iiabilities (2:I)/ 2otal 1ssets (21)
2he study e$ploys +etu#n on 1sset (+81) the
dependent -a#iable and $easu#es o& p#o&itability 2he debt
#atio and &i#$ siDe a#e used as !ont#ol -a#iables and will be
$easu#ed by the debt #atio and natu#al lo" o& asset
#espe!ti-ely 2he#e&o#e, the $odel o& the study is as &ollows:
+81
it
L aM a
1
=
1
M a
2
=
2
M
it

7he#e;
a is the !onstant
a
1
a
2
a#e !oe&&i!ients to e=planato#y -a#iables
=
1
(1AP) L 2otal :u##ent 1ssets (2:1)/ 2otal 1ssets (21)
=
2
(14P)L 2otal :u##ent Iiabilities (2:I)/ 2otal 1ssets
(21)

it
L <##o# 2e#$
(.1. )escripti%e Statistics
2he des!#ipti-e statisti!s &o# the th#ee -a#iables ha-e
been obtained &o# e$pi#i!al in-esti"ation and a#e p#esented
in the 2able 42
*a#le 1. Descriptive Statistics
N Minimum Ma.imum Mean
/td!
-e%iation
+81 4B 00000E 00321B 00043211 000'(((0(
1AP E0 E00000 999B'E (9'1'444 20021BE42
14P E0 11BB(9 3123B40 (193090( E49E444E(
>alid 3
(listwise)
4B
4#o$ table 1 on des!#ipti-e statisti!s p#o-ides a
su$$a#y o& dependent and independent -a#iables &o# 10
!o$panies @uoted at 3)< &o# a pe#iod o& &i-e yea#s &#o$
200( to 2012 At shows the nu$be# o& obse#-ations o& all
-a#iables, thei# a-e#a"e -alues and thei# standa#d de-iation
At shows the $ini$u$ and $a=i$u$ -alues as well whi!h
!an be attained by these -a#iables 2he des!#ipti-e statisti!s
show that all the -a#iables ha-e 4B obse#-ations 1ll the
-a#iables ha-e a positi-e $ean this shows that the
!o$panies at 3)< ha-e "ood pe#&o#$an!e 2he dependent
-a#iable #etu#n on assets has the a-e#a"e -alue o&
000043211 At has a $ini$u$ -alue o& 00000E and a
$a=i$u$ -alue o& 000321B 2he standa#d de-iation &o#
#etu#n on assets was 0000'(( 2o !he!5 the wo#5in"
!apital in-est$ent poli!y o& these !o$panies, !u##ent assets
to total assets #atio (1AP) is in!luded, it has an a-e#a"e
-alue o& 0(9'1'4 with a standa#d de-iation o& 020021B
Mini$u$ -alue o& 14P is 011BB(9 and its $a=i$u$ -alue
was 312 14P has the hi"hest standa#d de-iation &ollowed
by 1AP and then +81
*a#le 2. Correlations
$OA A"0 A)0
+81
Pea#son :o##elation 1 2BB 3B2
NN

)i" (2-tailed) 0EB 009
3 4( 4( 4(
Ante#national .ou#nal o& <!ono$i!s, 4inan!e and Mana"e$ent )!ien!es 2014; 2(3): 212-219 21B

$OA A"0 A)0
1AP
Pea#son :o##elation 2BB 1 3E2
N

)i" (2-tailed) 0EB 012
3 4( E0 E0
14P
Pea#son :o##elation 3B2
NN
3E2
N
1
)i" (2-tailed) 009 012
3 4( E0 E0
NN :o##elation is si"ni&i!ant at the 001 le-el (2-tailed)
N :o##elation is si"ni&i!ant at the 00E le-el (2-tailed)
4#o$ table 2 p#o-ides the Pea#son?s :o##elation $at#i=
&o# all the -a#iables used in the analysis !oe&&i!ient e=plains
the #elationship between two -a#iables At shows !han"e in
one -a#iable be!ause o& any !han"e in othe# -a#iable 2his
analysis helps to lo!ate the #elationship that e=ists a$on"
the independent o# e=planato#y -a#iables the#e was positi-e
!o##elation between +81 and 1AP 02BB+81 has
si"ni&i!ant positi-e !o##elation with 14P 03B2
NN
2he#e
was si"ni&i!ant positi-e !o##elation between 1AP and 14P
*a#le 3. Model Summary
Model $
$
/1uare
Ad+usted $
/1uare
/td! Error o2 the
Estimate
1 414
a
1B2 134 000'41023
a P#edi!to#s: (:onstant), 14P, 1AP
,ependent -a#iable: +81
4#o$ table 3 $odel su$$a#y the -alue o& + s@ua#e is
01B2 this i$plies that 1B2C o& -a#ian!e in the
independent -a#iables !an be a!!ounted in the dependent
-a#iable +81 2he standa#d e##o# &o# the esti$ates is
0000'41023 and ad%usted + s@ua#e is 0134 2his $odel is
"ood &it as 4-statisti!s is si"ni&i!ant 2his $eans that 1B2C
o& the !han"es in depended -a#iables !an be e=plained by
e=planato#y -a#iables while (2(C !annot be e=plained by
e=planato#y -a#iables hen!e e##o# te#$
3 (onclusions o2 the /tudy
9ased on the #esea#!h @uestions o& the pape# it answe#s
the$ as &ollows:
1 7hat is the #elationship between wo#5in" !apital
$ana"e$ent poli!y and &inan!ial pe#&o#$an!e o&
!o$panies @uoted at 3)<K
2he study !on!ludes that the#e is an e=istin"
#elationship between wo#5in" !apital $ana"e$ent
poli!y and &inan!ial pe#&o#$an!e o& !o$panies
@uoted at 3)< 2he dependent -a#iable whi!h is
+81 is in&luen!ed by the independent -a#iables
whi!h we#e 1AP and 14P by 1B2C 2his $eans
that 1B2C o& the !han"es in dependent -a#iable
(+81) !an be e=plained by e=planato#y -a#iables
while (2(C !annot be e=plained by e=planato#y
-a#iables hen!e e##o# te#$ 2he $odel the#e&o#e is
as below:
+81
it
L aM a
1
=
1
M a
2
=
2
M
it
+81
it
L aM01B4 a
1
M032a
2
M0(2(
2 ,oes 1""#essi-e An-est$ent Poli!y ha-e any
e&&e!t on the +81 o& &i#$s @uoted at 3)<K
2he study also !on!ludes that e&&i!ient wo#5in"
!apital $ana"e$ent has a positi-e e&&e!t on the
&inan!ial pe#&o#$an!e o& the !o$pany 2he
dependent -a#iable whi!h is +81 is in&luen!ed by
the independent -a#iables whi!h we#e 1AP and
14P by 1B2C 2his $eans that 1B2C o& the
!han"es in dependent -a#iable (+81) !an be
e=plained by e=planato#y -a#iables while (2(C
!annot be e=plained by e=planato#y -a#iables
hen!e e##o# te#$ 2he 9eta-!oe&&i!ient o& !u##ent
assets to total assets #atio is 01B4 whi!h shows
that i& the#e is an in!#ease o& 1 unit in 1AP then it
!auses an in!#ease o& 01B4 units in +81 )o,
the#e is positi-e #elationship between 1AP and
+81
3 ,oes 1""#essi-e 4inan!in" Poli!y in&luen!e +81
o& the &i#$ at 3)<K
2he study also !on!ludes that e&&i!ient wo#5in"
!apital $ana"e$ent has a positi-e e&&e!t on the
&inan!ial pe#&o#$an!e o& the !o$pany 2he
dependent -a#iable whi!h is +81 is in&luen!ed by
the independent -a#iables whi!h we#e 1AP and
14P by 1B2C 2his $eans that 1B2C o& the
!han"es in dependent -a#iable (+81) !an be
e=plained by e=planato#y -a#iables while (2(C
!annot be e=plained by e=planato#y -a#iables
hen!e e##o# te#$ )i$ila#ly the 9eta-!oe&&i!ient o&
!u##ent liabilities to total assets #atio is 0320
whi!h shows that i& the#e is an in!#ease o& 1 unit in
14P then it !auses an in!#ease o& 0320 units in
+81 )o, the#e is a positi-e #elationship between
14P and +81
4 ,oes wo#5in" !apital $ana"e$ent poli!y in&luen!e
&inan!ial pe#&o#$an!eK
2he study !on!ludes that wo#5in" !apital
$ana"e$ent poli!y in&luen!e &inan!ial pe#&o#$an!e
2he independent -a#iables whi!h a#e in-est$ent
poli!y and &inan!in" poli!y in&luen!e +81 whi!h is
the &inan!ial pe#&o#$an!e 2he 9eta-!oe&&i!ient o&
!u##ent assets to total assets #atio is 01B4 whi!h
shows that i& the#e is an in!#ease o& 1 unit in 1AP
then it !auses an in!#ease o& 01B4 units in +81 )o,
the#e is positi-e #elationship between the$
)i$ila#ly the 9eta-!oe&&i!ient o& !u##ent liabilities to
total assets #atio is 0320 whi!h shows that i& the#e
is an in!#ease o& 1 unit in 14P then it !auses an
in!#ease o& 0320 units in +81 2he dependent
-a#iable whi!h is +81 is in&luen!ed by the
independent -a#iables whi!h we#e 1AP and 14P by
1B2C 2his $eans that 1B2C o& the !han"es in
dependent -a#iable (+81) !an be e=plained by
e=planato#y -a#iables while (2(C !annot be
e=plained by e=planato#y -a#iables hen!e e##o# te#$
21( 7innie Mo5ei#a 3yabuti and 8ndie5 9enedi!t 1lala: 2he +elationship between 7o#5in" :apital Mana"e$ent Poli!y and
4inan!ial Pe#&o#$an!e o& :o$panies ;uoted at 3ai#obi )e!u#ities <=!han"e, /enya
2he study #e!o$$ends that i& p#ope# poli!ies o&
&o#$ulatin" st#ate"ies on wo#5in" !apital $ana"e$ent a#e
used, thei# i$pa!t on p#o&itability will i$p#o-e espe!ially
in de-elopin" !ount#ies li5e /enya

$e2erences
O1P 1bo#, . (200E) 2he <&&e!t o& :apital )t#u!tu#e on
P#o&itability: 1n <$pi#i!al 1nalysis o& Iisted 4i#$s in
Fhana .ou#nal o& +is5 4inan!e, >ol ',43(-4B
O2P 1puoyo 98 (2010) 2he +elationship between 7o#5in"
:apital Mana"e$ent Poli!ies and P#o&itability &o#
:o$panies ;uoted at the 3)<, 0npublished M91 P#o%e!t,
0ni-e#sity o& 3ai#obi
O3P 1#nold, F (200() :o#po#ate &inan!ial $ana"e$entPea#son
edu!ation li$ited, 4
th
edition
O4P 9au$ol, 7. (19E2) 9au$ol?s Model &o# Mana"in"
An-ento#ies: .ou#nal o& <!ono$i!s, >ol E2(4)
OEP 9iwott +/ (2011) 2he +elationship between 7o#5in"
:apital Mana"e$ent P#a!ti!es and P#o&itability o&
:o$panies ;uoted at the 3ai#obi )to!5 <=!han"e,
0npublished M91 P#o%e!t, 0ni-e#sity o& 3ai#obi
O'P 9#i"ha$ <4 GFapens5i I: (2004)Ante#$ediate
4inan!ial Mana"e$ent, (
th
ed, ,#yden P#ess
OBP :hiou et al (200')2he ,ete#$inants o& 7o#5in" :apital
Mana"e$ent.ou#nal o& 1$e#i!an 1!ade$y o& 9usiness, -ol
10, 149-1EE:onse#-ati-e 7o#5in" :apital Poli!ies, .ou#nal
o& 4inan!ial and )t#ate"i! ,e!ision, -ol 12,143-EB
O(P ,e1n"elo*and+Musulis(19(0),8pti$al:apital)t#u!tu#ea
nd:o#po#ateandPe#sonal2a=ation,.ou#nal o& 4inan!ial
<!ono$i!s,( , 3-29
O9P <l%elly 1M1 (2004) QIi@uidity-P#o&itability t#ade o&& an
<$pi#i!al An-esti"ations in an <$e#"in" Ma#5etR
Ante#national %ou#nal o& !o$$e#!e and $ana"e$ent -ol 14
3o 2 ,PP 4(-'1
O10P 4ishe# A (1911) 2he <@uation o& <=!han"e1$e#i!an
<!ono$i! +e-iew>ol 10, 1(9'-1910
O11P 4#ied$an M (19E')2he ;uantity 2heo#y o& Money: 1
+estate$ent2he 8pti$u$ ;uantity o&Money,E1-'B
O12P Fill (2010)2he +elationship between 7o#5in" :apital
Mana"e$ent and P#o&itability: <-iden!e &#o$ the 0nited
)tates9usiness and <!ono$i!s .ou#nal, >ol l1
O13P Fupta :P (2002) 7o#5in" :apital Pe#&o#$an!e o&
:o#po#ate Andia: 1n <$pi#i!al )u#-ey &o# the Sea# 2000-
2001 Mana"e$ent and 1!!ountin" +esea#!h, .anua#y-.une,
43-'B
O14P *a##is, 1 (200E) 7o#5in" :apital Mana"e$ent ,i&&i!ult
but +ewa#din" 4inan!ial <=e!uti-e 21(4);E2-E3
O1EP .ensen M: (19BB)2he 1"en!y :osts o& 4#ee :ash 4lows,
:o#po#ate 4inan!e and 2a5eo-e#, .ou#nal o& 1$e#i!an
<!ono$i! +e-iew, 323-329
O1'P /eynes .M (193') 2he Fene#al 2heo#y o& <$ploy$ent,
Ante#est and Money, *a#!ou#t, 9#a!e and :o$pany, 3ew So#5
O1BP /ithii .3 (200() 2he +elationship between 7o#5in"
:apital Mana"e$ent and P#o&itability o& :o$panies listed
on the 3ai#obi )to!5 <=!han"e 0npublished M91 P#o%e!t,
0ni-e#sity o& 3ai#obi
O1(P Ia$be#son M (199E) :han"es in 7o#5in" :apital o& )$all
4i#$s in +elation to :han"es in <!ono$i! 1!ti-ityMid-
1$e#i!an .ou#nal o& 9usiness 10(2): 4E-E0
O19P Mathu-a , (2009)2he An&luen!e o& 7o#5in" :apital
Mana"e$ent :o$ponents on :o#po#ate P#o&itability: 1
)u#-ey on /enyan Iisted 4i#$s +esea#!h .ou#nal o&
9usiness Mana"e$ent, -ol 3 (2), 11-1(
O20P Mian )3 G2alat 1 (2009)A$pa!t o& 1""#essi-e 7o#5in"
:apital Mana"e$ent Poli!y on 4i#$s
P#o&itability2heA0P.ou#nal o& 1pplied 4inan!e, >ol 1E,
3o(,2009 12: 112-124
O21P Mu5hopadhyay, , (2004) 7o#5in" !apital $ana"e$ent in
hea-y en"inee#in" &i#$s- 1 !ase study Mana"e$ent
1!!ountant-:al!utta-,39,31B-323
O22P Mye#s ): (19(4) 2he:apital)t#u!tu#ePuDDle .ou#nal o&
4inan!e, 39, EBE-E92
O23P 3aDi# M G1&Da 2 (2009)2he A$pa!t o& 1""#essi-e
7o#5in" :apital Mana"e$ent Poli!y on 4i#$?s p#o&itability,
2he A0P .ou#nal o& 1pplied 4inan!e, >ol 1E
O24P 3ya5undi M (2003)2he 7o#5in" :apital Mana"e$ent
Poli!ies 1$on" Publi! :o$panies in /enya, 0npublished
M91 P#o%e!t, 0ni-e#sity o& 3ai#obi
O2EP 8!hien" 1 . (200')+elationship 9etween 7o#5in" :apital
8& 4i#$s Iisted on 2he 3ai#obi )to!5s <=!han"e and
<!ono$i! 1!ti-ities An /enya, 0npublished M91 P#o%e!t,
0ni-e#sity o& 3ai#obi
O2'P Pandey, AM (200B), 4inan!ial Mana"e$ent, 3inth <dition,
3ew ,elhi; >i5as Publishe#s
O2BP Pen#ose <2 (19E9) 2he theo#y o& the F#owth o& the &i#$,
3ew So#5, 7iley
O2(P +eh$an 1 G3aDi# M (200')7o#5in" :apital
Mana"e$ent and P#o&itability: :ase o& Pa5istani 4i#$s,
0npublished ,isse#tation, :8M)12) Anstitute o&
An&o#$ation 2e!hnolo"y (:AA2), Asla$abad, Pa5istan
O29P +i!!i, : G >ito 3 (2000)Ante#national 7o#5in" :apital
P#a!ti!es in the 0/<u#opean 4inan!ial Mana"e$ent, '(1),
'9-(4
O30P +i!ha#ds >, G Iau"hlin <. (19(0)1 :ash :on-e#sion
:y!le 1pp#oa!h to Ii@uidity 1nalysis, 4inan!ial
Mana"e$ent .ou#nal, -ol 9 (1), 32-3(
O31P )alawu +8 (200') Andust#y P#a!ti!e and 1""#essi-e
:onse#-ati-e 7o#5in" :apital Poli!ies in
3i"e#ia<u#opean.ou#nalo&)!ienti&i!+esea#!h-ol133o3(20
0'), pp 294-304
O32P )atha$oo#thi :+ (2002) 2he Mana"e$ent o& 7o#5in"
:apital in sele!ted !o-ope#ati-es in 9otswana 4inan!e Andia
,ehli1'(3), 101E-1034
O33P )hin, ** G)oenen, I (199() <&&i!ien!y o& 7o#5in"
:apital Mana"e$ent and :o#po#ate P#o&itability, 4inan!ial
P#a!ti!e and <du!ation, >ol ( (2), 3B-4E
Ante#national .ou#nal o& <!ono$i!s, 4inan!e and Mana"e$ent )!ien!es 2014; 2(3): 212-219 219

O34P )$ith / (19(0) P#o&itability -e#sus Ii@uidity 2#adeo&&s in
7o#5in" :apital Mana"e$ent, in +eadin" on the
Mana"e$ent o& 7o#5in" :apital 3ew So#5: )t Paul, 7est
Publishin" :o$pany
O3EP )oenen I 1 (1993) :ash :on-e#sion :y!le and :o#po#ate
P#o&itability.ou#nal o& :ash Mana"e$ent 13(4): E3-E(
O3'P 2it$an ) G7essels + (19(()2he ,ete#$inants o& :apital
)t#u!tu#e :hoi!e .ou#nal o& 4inan!e, >ol 43, 1-19
O3BP >an *o#ne .: G7a!howi!D .M (2000)4unda$entals o&
4inan!ial Mana"e$ent11
th
<, P#enti!e *all An!
O3(P 7ein#aub * . G>iss!he# ) (199()Andust#y P#a!ti!e
+elatin" to 1""#essi-e