THE INFLUENCE OF OPERATING CASH FLOW AND ASSETS TANGIBILITY ON
WORKING CAPITAL MANAGEMENT OF LISTED DOWNSTREAM OIL AND GAS
COMPANIES IN NIGERIA

Moses Babatunde OLANISEBE 1 and Rabiu ADO, PhD 2
1 M.Sc. (Accounting), Department of Accounting, Bayero University Kano, Kano State, Nigeria,
2 Department of Accounting, Bayero University Kano, Kano State, Nigeria,
1 E-mail: walemose@gmail.com 2 E-mail: rabsadds@yahoo.com

Abstract
This paper examines the influence of operating cash flow and assets tangibility on working capital
management of listed downstream oil and gas companies in Nigeria. Data were collected from the annual
reports and accounts of the selected eight (8) companies for the period 2005- 2018 (14 years). A panel data
methodology was used in order to study the behavior of each company over time and a linear regression
technique was employed for data analysis. After controlling for firm age and profitability, it was found that
both the operating cash flows and asset tangibility significantly influence working capital management of
the sampled firms. The study recommends that corporate financial managers of downstream oil and gas
companies in Nigeria should use these results as a control measure for a suitable level of working capital
because investment in fixed tangible assets is a most important constraint in effective working capital
management it too much amount of capital in it.
Keywords: Operating cash flow, asset tangibility, working capital, downstream oil and gas companies

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