Abstract This paper analyses the link between working capital management and profitability of firms in the context of developing economies. A balanced panel consisting of eleven (11) manufacturing firms listed on the Ghana Stock Exchange covering the period of 2011-2017 was used. The link between working capital management and profitability was examined using dynamic panel regression (Arellano-Bond Estimation) technique. The study revealed that there is a significant positive linear relationship between working capital management and firms’ profitability. The findings also reveal the existence of a concave quadratic relationship between working capital management and firms’ profitability. There is an optimal level at which working capital management maximises firm’s profitability, therefore, managers need to ensure that they operate within the limits of the optimal level by implementing an effective and efficient working capital management policy. The study concludes that, the practice of an aggressive working capital management policy maximises a firm’s profitability.

中文翻译：

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营运资金管理会影响加纳制造公司的盈利能力吗？

摘要本文分析了发展中经济体中营运资金管理与企业盈利能力之间的联系。使用了由2011年至2017年期间在加纳证券交易所上市的十一（11）家制造公司组成的平衡面板。使用动态面板回归（Arellano-Bond Estimation）技术检查了营运资金管理与盈利能力之间的联系。该研究表明，营运资金管理与企业盈利能力之间存在显着的正线性关系。研究结果还揭示了营运资金管理与企业盈利能力之间存在着二次方凹关系。在一个最佳水平上，营运资金管理可以最大化公司的盈利能力，因此，管理人员需要通过实施有效和高效的营运资金管理政策，确保他们在最佳水平的范围内运营。该研究得出的结论是，积极的营运资金管理政策的实践可最大化公司的盈利能力。