Abstract: The study sought to establish the Effect of working capital management on the financial performance of listed non-financial firms in Kenya. The research design used was descriptive survey design. The data used was secondary data from 40 non-financial firms listed in the NSE. Data was extracted from Audited financial statements of various non-finance firms listed at the NSE and the analysis covered the period from the year (2011-2015). Data collected was recorded in data collection sheets and then coded and entered into SPSS Version 21 for further analysis. Descriptive statistical analysis involved means, standard deviation, minimum and maximum. Inferential statistical analysis involved the bivariate Pearson correlation analysis and multiple regression. The study found out that cash conversion cycle and accounts receivables had statistically significant effect on financial performance of listed non finance companies in Kenya. However, the effect of accounts payables and inventory turnover had statistically insignificant effect on financial performance of the same companies. The study thus concludes that working capital had a significant effect on financial performance of listed non-financial companies in Kenya as shown by ANOVA. The study further recommends that listed non finance companies should improve debt collection by reducing the accounts receivables period through means like giving debtors discount for prompt payments of outstanding debts.
Keywords: Working Capital Management, Financial performance, Listed-non financial Companies.
Title: Effect of Working Capital Management on Financial Performance of Listed Non-Financial Firms in Kenya
Author: Hiram Kariuki Macharia, Dr. Willy Muturi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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