EFFECTS OF CASH CONVERSION CYCLE ON FINANCIAL PERFORMANCE AND FIRM VALUE OF SELECTED PUBLICLY LISTED NIGERIAN MANUFACTURING FIRMS

The study examined the effects of cash conversion cycle on the financial performance of selected publicly listed Nigerian manufacturing firms. The specific objectives are to examine the effect of the Account Receivable Period on the financial performance, evaluate the effect of Account Payable Period on the financial performance of selected publicly listed Nigerian manufacturing firms. A survey research design was adopted for the study. A structured questionnaire with questions on a yes-or-no basis and a four-point Likert scale was used to collect data. The statistical tools used are exploratory data analysis and Chi-square. SPSS 27.0 was used for the analysis. The result revealed that the Account Receivable Period has a significant positive effect on the financial performance. Account Payable Period has a significant positive effect on the financial performance of selected publicly listed Nigerian manufacturing firms. The study concluded that for selected publicly listed Nigerian manufacturing firms, the dynamics of the CCC are heavily dictated by the country’s unique macroeconomic idiosyncrasies, resulting in unconventional but highly rational operational behaviors. The study recommended that financial managers in these publicly listed firms should continue to monitor their cash conversion cycles, they must resist the blanket application of Western-centric "shorter is better" models