Cheboi, Solomon Kimutai2026-02-182026-02-182025-10https://ir-library.ku.ac.ke/handle/123456789/32489A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration (Finance) of Kenyatta University, October, 2025 Supervisor: 1.Anthony Mugetha IrunguFirm value is a critical indicator for publicly traded companies, as it directly shapes investor perceptions and investment decisions. High firm value signals effective management and financial health, which motivates investors to commit capital, while declining market valuations may indicate inefficiencies, deterring investment. Recent trends in manufacturing firms listed on the Nairobi Securities Exchange (NSE) reveal a decline in market worth, evidenced by erratic share returns over the 2014–2023 period, highlighting a pressing need to examine the determinants of firm value. This study investigates how working capital management practices—specifically accounts receivable management, accounts payable management, and inventory management—affect firm value of manufacturing companies listed on the NSE. The research was anchored on transaction cost theory, the cash conversion cycle, and shareholder wealth theory, providing a conceptual basis for understanding how efficient management of current assets and liabilities contributes to value maximization. An explanatory research design was adopted to allow in-depth analysis of cause-effect relationships. The target population comprised all nine manufacturing firms listed on the NSE, with a purposive sample of seven firms consistently listed between 2014 and 2023 included in the study. Data were collected from audited financial statements, and both content and construct validity were ensured through expert review and alignment with theoretical constructs. Reliability was assessed using Cronbach’s alpha, with a threshold of 0.7 considered acceptable. Numerical data were analyzed using STATA. Descriptive statistics (means, standard deviations, minimum and maximum values) summarized central tendencies and variability, while inferential analyses, including correlation and regression modeling, evaluated relationships and predictive effects. Tests for normality, collinearity, serial correlation, and Hausman specification were conducted to ensure robustness. Data were presented using tables and figures for clarity. The study found that efficient accounts receivable management—reflected in shorter collection periods—enhances firm value by signaling strong credit policies and improving investor confidence. Strategic accounts payable management was shown to require balancing liquidity benefits against supplier relations, as excessive payment delays can signal financial distress. Lean inventory management practices were associated with reduced holding costs, improved operational efficiency, and enhanced competitiveness, directly contributing to firm valuation. Based on these findings, manufacturing firms should implement comprehensive credit risk assessment systems, adopt automated receivables management tools, establish transparent supplier partnerships, and deploy advanced inventory technologies including AI-driven forecasting. Additionally, organizations should develop integrated working capital frameworks with cross-functional performance metrics to ensure coordinated management of receivables, payables, and inventory. Significance of the study: The findings provide empirical guidance to managers and investors on the strategic management of working capital to enhance firm value. Policymakers can use the insights to promote corporate governance practices that improve liquidity management and investor confidence in the NSE-listed manufacturing sectorenThesis