Impact Of Effective Cash Management On Corporate Performance (A Study Of Nestle Nig. Plc)

ABSTRACT

The study examined  impact of effective cash management  on corporate  performance.  The specific objectives were; to determine the impact of cash ratio on the return on asset of the company, to ascertain the impact of cash turnover on the return on equity of the company and to  empirically  examine  the  impact  of  debtor  ratio  on  profit  after  tax.  This  study  used secondary data derived from financial statement of Nestle Nigeria Pie ..  The study covered from 200  to  2015.  Ordinary  Least  Square  (OLS) regression  was  used  to  test  the  stated hypotheses. The study observed that cash ratio has negative and insignificant  impact on the return on asset of the company, cash turnover ratio has positive and insignificant  impact on the return on equity of the company and debt ratio has positive and insignificant impact on profit after tax of the study company.  It was recommended that Chief financial officers of the study company should as matter of urgency exercise caution while choosing the amount· of debt to use in their capital structure since debt ratio has positive and insignificant impact on profit after tax.

Keywords:  Effective cash management   and corporate   performance