Journal of Finance and Accounting
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Journal of Finance and Accounting. 2021, 9(1), 48-59
DOI: 10.12691/jfa-9-1-5
Open AccessArticle

Moderating Effect of Ownership Structure on the Relationship between Working Capital Management Decisions and Financial Performance of Tea Firms in Kenya

Charles Kiprotich Yegon1, , Willy Muturi1 and Oluoch Oluoch1

1Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya

Pub. Date: December 07, 2021

Cite this paper:
Charles Kiprotich Yegon, Willy Muturi and Oluoch Oluoch. Moderating Effect of Ownership Structure on the Relationship between Working Capital Management Decisions and Financial Performance of Tea Firms in Kenya. Journal of Finance and Accounting. 2021; 9(1):48-59. doi: 10.12691/jfa-9-1-5

Abstract

Kenyan tea industry is struggling to thrive. Multinationals and KTDA managed tea firms in Kenya have been performing poorly in the recent past where audited financial statements and reports revealed a warning signal on its financial performance. Specific objectives of the study was to investigate the moderating effect of ownership structure on the relationship between accounts receivables collection period, accounts payment period, inventory conversion period, cash conversion period, WCM policies and financial performance of tea firms in Kenya. The study concludes that the ownership structure moderates the relationship between working capital management decisions and financial performance of tea firms in Kenya.

Keywords:
working capital accounts receivable accounts payables and inventory

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