EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY OF MICROFINANCE INSTITUTIONS IN KUMASI
Loading...
Date
July, 2015
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The study examined the effect of working capital management on the profitability of selected microfinance institutions in Kumasi from 2011-2014. The study has revealed that Cash Conversion Cycle (CCC) has a significant negative effect on the profitability (financial performance) of the selected MFIs. It was also revealed that, Acid Ratio (AR) and Loan to Deposit Ratio (LDR) have significant positive impacts on the profitability of the selected MFIs. The study further revealed that gearing has a positive but insignificant effect on the financial performance of the selected companies. Among the recommendations for MFIs are: striving to reduce their CCC periods and also, MFIs should improve their acid ratios.
Description
A Thesis submitted to the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Master of Business Administration (Finance Option)