IMPACT OF COVID-19 ON WORKING CAPITAL MANAGEMENT: A THEORETICAL APPROACH

  • Johnson Kolawole Olowookere Department of Accounting, Osun State University, Okuku Campus, Nigeria
  • Tajudeen A. Odetayo Department of Accountancy, Osun State Polytechnic, Iree, Nigeria
  • Adewumi Zaid Adeyemi Department of Accounting, Osun State University, Okuku Campus, Nigeria
  • Oloruntoba Oyedele Department of Accounting and Finance, Ajayi Crowther University, Oyo, Nigeria

Abstract

This study uses an archival technique to examine the impact of COVID-19 on working capital management. The study reviews previous research published in high-impact journals between 2000 and 2021. In addition, the study uses the risk trade-off theory, market timing theory, and cash conversion cycle theory as lenses to understand the relationship between COVID-19 and working capital management. Both theoretical and empirical reviews indicate that the impact of the COVID19 plague has weakened the finances of business organizations on a global scale. Thus, reviewed theories suggest that for the business organizations to come into the limelight of financial muscle amidst COVID-19, managers should review variable costs and work with their main partners, and access to funds that have been made available to corporate organizations as a result of the mitigation of the COVID-19 plague.

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Published
2021-11-21
How to Cite
OLOWOOKERE, Johnson Kolawole et al. IMPACT OF COVID-19 ON WORKING CAPITAL MANAGEMENT: A THEORETICAL APPROACH. Journal of Business And Entrepreneurship, [S.l.], v. 10, n. 1, p. 38-47, nov. 2021. ISSN 2685-6255. Available at: <https://ojs.sampoernauniversity.ac.id/index.php/JOBE/article/view/224>. Date accessed: 07 oct. 2022. doi: https://doi.org/10.46273/job&e.v10i1.224.