| dc.description.abstract | In Kenyan Manufacturing firms have become an important contributor to the economy.
The sector contributes to the national objective of creating employment opportunities
and generating income for the economy. There has been poor performance in
manufacturing firms in general as evidenced by the stagnated growth of the sector over
the last decade and closure of or relocation of operations by some manufacturers’ as
reported by Kenya Association of Manufacturers. Liquidity challenges among
manufacturing firms has been an issue over time and again. The general objective of this
study was to determine the effects of liquidity management practices on value of
manufacturing firms listed at Nairobi Security Exchange in Kenya. This study was
guided by the following specific objectives to determine the effect of inventory
management practices on value of listed manufacturing firms at Nairobi Security
Exchange in Kenya, to establish the effect of accounts receivable management practice
on value of listed manufacturing firms at Nairobi Security Exchange in Kenya, to
determine the effect of accounts payable and practices on value of listed manufacturing
firms at Nairobi Security Exchange in Kenya and to establish the moderating effect of
conversion cycle on the relationship between liquidity management practices and value
of manufacturing firms listed at Nairobi Security Exchange in Kenya. The study will
apply survey research design. Target population of 8 manufacturing firms whereby
census will apply. Secondary data will be obtained for a 5 year period of 2017-2021
financial years. Data will be analyzed using inferential statistics and will be presented
through tables. The study found all the variables to be positive and significant thus
inventory management practices p-value (0.0018), accounts receivable management
practice p-value (0.0317), accounts payable management practice (0.0441), Cash
Conversion Cycle (0.016). Therefore the null hypothesis Ho3-Ho4: were all rejected. The
study concluded that inventory management practice, accounts receivable management
practice and accounts payable management practice have a significant effect on value of
listed manufacturing firms at Nairobi Security Exchange in Kenya. Cash Conversion
Cycle had a moderating effect on liquidity management practices and Value of
Manufacturing firms. The study recommends that since inventory management practice
has a significant effect on value of manufacturing firms it is important for manufacturing
firms to monitor the opening and closing inventories for efficiency purposes. The study
recommends that credit sales and cash sales should be checked to ensure that accounts
receivable management practice is effective. The study recommend monitoring of credit
purchases along cash purchases this will lead to an effective payables management
practice for manufacturing firms. The study recommends consistency and accuracy on
days used to convert stock to cash. This will help in managing cash conversion cycle
process. | en_US |
