Spontaneous Financing and Performance of Manufacturing Firms: Evidence From Nigeria
Spontaneous Financing and Performance of Manufacturing Firms: Evidence From Nigeria
Author(s): Olusola Enitan Olowofela, Abiola Mukail Tonade, Theophilus Oamen, Mariam AdekunleSubject(s): Economy, Business Economy / Management, Accounting - Business Administration
Published by: Universitatea SPIRU HARET - Faculty of Accounting and Financial Management
Keywords: Account Receivable Turnover; Inventory Turnover; Account Payable Turnover; Spontaneous Financing;
Summary/Abstract: This paper examines the relationship between spontaneous financing and the performance of manufacturing firms in Nigeria, using annual time series data from a sample of 10 companies listed between 2010 and 2020. The study uses return on equity (ROE) and return on assets (ROA) as proxies for financial performance, serving as dependent variables, while the independent variables include account receivable turnover, account payable turnover, and inventory turnover. The findings reveal that account receivable turnover (ART) and inventory turnover (IT) positively influence both ROA and ROE in the context of spontaneous financing through trade credit and its impact on the financial performance of manufacturing industries in Nigeria. Conversely, account payable turnover (APT) negatively affects both ROA and ROE in relation to spontaneous financing through trade credit.
Journal: Journal of Academic Research in Economics (JARE)
- Issue Year: 17/2025
- Issue No: 1
- Page Range: 49-63
- Page Count: 15
- Language: English
