The Effect of Covid-19 Pandemic on Working Capital Management of Companies in the Telecommunications Sector in Zimbabwe
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Date
2022-04-20
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International Journal of Auditing and Accounting Studies
Abstract
This study aims to explore the effect of the Covid19 pandemic on the working capital of organisations in the telecommunications sector in Zimbabwe. The research was conducted against the background that some organisations were struggling to meet working capital needs due to continuous lockdowns which negatively affected organisations. The study was based on a sample of 78 respondents who were selected from four telecommunications organisations in the city of Bulawayo. The study was conducted using the descriptive design and questionnaires were used for collecting data. Data was analysed using SPSS 22.0. Standard deviations and mean values were used to present descriptive data while regression analysis was used to establish relationships between Covid19 working practices and working capital elements. The study revealed that organisations had implemented HRM, financial, Marketing and operations management practices to a greater extent. Some of the practices implemented were not necessarily imposed by the government but as a response to the need for survival by the organisations themselves. The results revealed that Covid19 working capital practices had a statistically significant effect on inventory and accounts receivable but did not have an effect on accounts payable and cash management.
The study thus recommended contingency plans from companies to properly manage their working capital.
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Lovejoy Ncube & Fainos Chinjova (2022). The Effect of Covid-19 Pandemic on Working Capital Management of Companies in the Telecommunications Sector in Zimbabwe. International Journal of Auditing and Accounting Studies. 4(1), 75- 106.