Working Capital Management and Performance of Quoted Construction Firms in Nigeria
This study examines the effect of working capital management on the performance of quoted construction firms in Nigeria. The study adopts an ex post facto research design using panel data from five construction firms listed on the Nigerian Exchange Group over the period 2013 2023. Secondary data were analyzed using panel corrected standard error (PCSE) regression. Working capital management was proxied by current ratio, cash ratio and average collection period, while firm performance was measured using return on assets, with firm size incorporated as a moderating variable. The findings reveal that current ratio has a positive and significant effect on firm performance, whereas cash ratio and average collection period exert significant negative effects. The results further show that firm size strengthens the relationship between liquidity management and performance, indicating that larger firms derive greater benefits from efficient working capital strategies. These findings imply that while adequate liquidity enhances operational stability and profitability, excessive cash holdings and prolonged receivables cycles constrain performance. The study recommends that construction firms should optimize liquidity levels, shorten receivables collection periods and deploy excess cash into productive investments, while firm size should be used as leverage to negotiate favorable credit terms. Keywords: Construction Firms, firm size, performance, working capital management
Keywords: Construction Firms, firm size, performance, working capital management
Citation: Auru, H.O., Malgwi, A.A. & Ibrahim, K.F.A. (2026). Working Capital Management and Performance of Quoted Construction Firms in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 11(1), 12-22.