The concept of financial constraint have a great influence on company decision and capital market entrance as shareholders and directors recognised its negative implication on firm performance. This paper is the first to conceptualize the theoretical influence of financial constraints (FC) on working capital investment (WCI) and corporate performance through firm internal resources and managerial competency by employing a qualitative approach from a theoretical disposition which has been meagerly demonstrated in the literature. Specifically, bearing in mind the rising unpredictability and issues in the credit and capital markets that has been noticed for numbers of years and the similar intensification in regulatory capital about acquiring external financing, the attention of the firm's gradually shifted to its internal liquidity generated from enterprise operation on the basis of working capital (WC). This study argues that business internal resources through managerial skill and internal capital can to enhance WCI in a financially constrained situation thereby reduces the agency cost and asymmetric information and increases performance. Hence, we conclude that internal funds is suitable to finance WCI in a constrained situation for managers to avoid overinvest or underinvest in working capital asset by controlling for financial constraints. Further review are expected to determine WCI-performance relationship using some vital accounting ratios largely generated from annual reports and accounts.
This study was designed to find the nexus between corporate governance and the concern of Nigeria DMBs with the specific role of audit committee financial expertise. Corporate governance is being used by stakeholders to determine the perpetual succession of business organization. This is prevalent in the DMBs and it has led to the expansion in the activities of DMBs as well as dynamic relationships between the management of DMBs and their owners. In lieu of this, this study sought to investigate this issue in the context of Nigeria. The research approach adopted for this study was quantitative. In addition, purposive sampling technique was adopted to select 8 DMBs listed from the sample frame obtained from NSE for the period 2014 - 2021. Using pooled OLS, the study revealed that ACFE has significant impact on DLLP as indicated by coefficient 98.843 with a p-value of 0.005, management equity holding has no significant impact on DLLP with coefficient 14.719 & p-value of 0.082 at 5% level of significance. Therefore, the study recommends that DMBs should increase the proportion of audit financial expertise with accounting background in the committee in order to enhance prudence and accountability. By this, it will boost the investors’ confidence as well as enhance their reputation and ensure their long-term prosperity.
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