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IMPACT OF COVID-19 ON WORKING CAPITAL MANAGEMENT: A THEORETICAL APPROACH Olowookere, Johnson Kolawole; Odetayo, Tajudeen A.; Adeyemi, Adewumi Zaid; Oyedele, Oloruntoba
Journal of Business And Entrepreneurship Vol. 10 No. 1 (2022): JOURNAL OF BUSINESS AND ENTREPRENEURSHIP (May 2022 Edition)
Publisher : APPS Publications

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46273/jobe.v10i1.224

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.