The Impact of Cash Conversion Cycle on Firm Profitability: Evidence from Nigerian Listed Telecommunication Companies

Abstract

Abstract:The objective of this study is to empirically find the effect of cash conversion cycle on corporate profitability of the ICT firms listed on the floor of the Nigerian Stock Exchange. Data are collected from all the listed firms from 2010 to 2014. The data are analyzed using multiple linear regression analysis and the robustness check shows that the data are normal. The findings indicate significant positive relationship between cash conversion cycle and corporate profitability.

Teknoloji̇ Sektöründe Naki̇t Dönüşüm Süresi̇ni̇n Fi̇rma Kârliliği Üzeri̇ndeki̇ Etki̇si̇ni̇n Anali̇zi̇: Bi̇st Uygulamasi

“…When the literature examining the relationship between cash conversion time and profitability is examined, studies that find a positive relationship between cash conversion cycle and profitability (Aytekin & Güler, 2014;Topaloğlu & Nur, 2016;Zakari & Saidu, 2016); on the other hand, some studies find negative relationships between cash conversion cycle and profitability (Garanina and Petrova, 2015;Chang, 2018;Şahin and Vergili, 2019). In the empirical analysis made within the scope of this study, there is evidence that there exists a positive relationship between cash conversion cycle and profitability.…”

The Effect of the Cash Conversion Cycle on the Z-scores of Fresh Milk Companies in Greece

“…Their study also indicated a positive relationship between the current ratio as a liquidity measure and the RNOA. Zakari and Saidu (2016), for Nigerian companies found a significant positive relationship between the CCC and corporate profitability. Sugathadasa (2018) found that the relationship between the CCC and profitability of manufacturing sector organizations listed in the Colombo Stock Exchange as measured by the ROA was positive, while negative between payable conversion periods on while the relationship between the CCC and the profitability ratio ROE was negative.…”

Manajemen Modal Kerja, Kendala Keuangan, Dan Profitabilitas Pada Perusahaan Manufaktur Indonesia

“…Sejumlah penelitian menunjukkan bahwa modal kerja signifikan berpengaruh negatif terhadap profitabilitas (Yazdanfar dan Ohman, 2014;Pais dan Gama, 2015). Namun, beberapa peneliti terdahulu yang lainnya malah menemukan pengaruh yang positif dari manajemen modal kerja terhadap profitabilitas perusahaan (Zakari dan Saidu, 2016;Veli, 2015). Menariknya lagi, beberapa penelitian di Indonesia memperlihatkan pengaruh yang tidak signifikan dari manajemen modal kerja terhadap profitabilitas.…”