Effect of efficiency on firms’ value: evidence from manufacturing firms
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Date
2023
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Publisher
KNUST
Abstract
The study examined the effect of efficiency on the firm value of manufacturing firms. The study design was explanatory. The study sampled 12 manufacturing firms from 2010 to 2021. The data was analysed descriptively and quantitatively using panel regression. The study found that most of the manufacturing firms covered under the study have positive cash conversion cycle suggesting that it takes longer for the firms to convert their inventory and account receivables into cash. The study also found that there was no significant effect between efficiency and asset return. It was also discovered that efficiency had a significant negative effect on the market performance of manufacturing firms. It is recommended that shareholders/investors should closely monitor the cash conversion cycle of the manufacturing firms in their investment portfolio. They should also ask for explanations from the company's management on the reasons behind the longer cash conversion cycles and what steps they are taking to address the issue.
Description
A thesis submitted to the department of accounting and finance, college of humanities and social sciences, in partial fulfillment of the requirements for the degree of master of science in accounting and finance