CASHFLOW MANAGEMENT AND THE FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA

ABSTRACT

This study investigated the influence of cashflow management on financial performance of listed manufacturing companies in Nigeria. The cashflow management variables examined in the study include cash conversion cycle (CCC), Credit policy (CREP), and Cash reserve management (CRM). The population of the study included forty three (43) manufacturing firms listed on the Nigeria Exchange Group ( NGX) with a sample size of thirteen (13) manufacturing companies purposively selected from the industrial goods sub-sector. Ex-post facto research design was employed in the study. The secondary data used was directly obtained from Central Bank of Nigeria (CBN) statistical bulletin and manufacturing firms’ annual statement of accounts for various years under review (2017 to 2022).

Correlation and regression analysis were employed. The findings reveal that Cash conversion cycle has a positive and significant impact on financial performance, Credit policy has a positive impact on the firm financial performance. Furthermore, Cash reserve management positively impacts financial performance. Consequent on the findings, this study therefore recommends amongst others that management of manufacturing firms should from time to time train staff on effective cashflow management.