An Assessment of the Impact of Working Capital Management on Cash Holdings: Case Study of Listed Companies in Tanzania

Mwamafupa, Lucas Gidion (2016) An Assessment of the Impact of Working Capital Management on Cash Holdings: Case Study of Listed Companies in Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

The study aimed at assessing the impact of working capital management on cash holdings. Theoretical perspective, empirical studies and conceptual framework were considered. In data and collection, interviews for collection of primary data and the use of companies’ financial statements and annual reports for the collection of the 2011 to 2013 data. The study was empirically analyzed and statistics were tested by using t-test, ANOVA and F-test. The study revealed that there is positive relationship between firms’ growth opportunity and firms’ cash holding. It also revealed that working capital expenditure to a degree is responsible for reducing cash balances in companies in Tanzania. From the findings obtained, the researcher recommends that management of firms should take into account the role of working capital expenditure, length of the cash conversion cycle, firms’ growth opportunities and other factors when planning and controlling for liquidity in the firms.

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