Corporate Governance and Working Capital Policy: An Unobserved Influence

This study examines the effect of corporate governance on working capital policy; Aggressive and Conservative of 103 firms listed on Nigeria and Ghana Stock Exchange from 2012 to 2016. This study used a panel data of nonfinancial companies listed on Nigeria and Ghana stock exchange for the period 2012–2016. Data extracted from the annual financial report. Companies with missing data were dropped given a total of 103 companies from both countries (Nigeria and Ghana) with total observation of 510. We discovered that corporate governance on implemented aggressive/conservative working capital policy by firms produced a mixed result. Aggressive working capital policy implementation calls for strict control mechanism to ensure less investment in current assets. Therefore, there is strong corporate governance influence on working capital management of firms that operate aggressive working policy than firms which have implemented conservative working capital policy.