EFFECTS OF WORKING CAPITAL MANAGEMENT ON THE FINANCIAL PERFORMANCE OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA

This study examines the effect of working capital management on the performance of quoted deposit money hanks in Nigeria from 2006 to 2018. The independent variable was measured using Loan loss provision, Loan to deposit ratio, and operating expenses to income, while the dependent variable was proxed by Net profit margin. Ex post facto research design was adopted for this study for the 12 deposit money banks quoted on the Nigerian Stock Exchange in 2018. The panel data was extracted from the annual financial reports of all the banks. Multiple regression was used in the analysis. It was found that there is a significant effect of working capital management on bank performance of DMBs in Nigeria. It was concluded that loan loss provision and operating expenses were all significant loan to deposit ratio was not. Based on the findings, it was recommended that government should ensure the stability of operating environment for banks. The liberalization policy should be vigorously pursued to enable banks and business decision makers to work freely within a wider horizon with reasonable degree of certainty about the environment for speedy and more effective decision making. These will make the banks to focus on cash flows, quick collection systems and discounts to improve on their working capital positions and operational efficiency.