摘要：This study sought to determine the effect of working capital management on performance of firms listed at the Nairobi Securities Exchange in Kenya. A sample of 27 listed firms was used for the period 2003 to 2012. The study employed a Robust GMM applied to Arellano-Bover/Blundell-Bond linear dynamic panel-data estimation analysis. The results revealed that days of accounts receivables and cash conversion cycle have an indirect effect on performance measured by gross operating profit. Days of accounts payables and days in inventory have a significant and direct effect on performance. Inflation and size were found to have indirect and direct effect on performance respectively. Although not significant, they cannot be ignored by finance managers who wish to boost performance. ANOVA results confirm that various sectors have varying and somewhat same averages of working capital. Therefore industry averages should not ignored when setting working capital management policies in Kenya
关键词：Working Capital Management (WCM); Gross Operating Profit (GOP); days in accounts receivables (AR); days in accounts payables (AP); days in inventory (INV); Nairobi Securities Exchange (NSE)
