Effect Of Liquidity Management On The Performance Of Firms In Nigeria (A Study Of Selected Firms In Nigeria)
ABSTRACT
This study sought to
establish the effect of liquidity management on the performance of firm in
Nigeria. This study involve secondary data collection, of which profit after
tax, return on equity, & return on asset were used to measure performance
and current ratio, cash ratio & acid test ratio were used to measure
liquidity. The ordinary least squares based method of multiple regression
analysis was used to determine the relationshiip of the variables. The F
statistic of 13.506 in model summary of table 4.1 below has probability value
of. 000 or at zero°A which is sufficiently low, we would reject the null
hypothesis. The study found that liquidity management has sign!Icant effect on
profit after tax at zero level of signflcance and therefore concluded that
liquidity management has significant effect on performance offirms in Nigeria.
The study therefore recommends that firms should maintain a moderate level of
liquidity that does not threaten their going concern status, and yet allows
them to make adequate profits on their investments. The Management are to
manage their assets appropriately in order to yield more profit, and also they
should venture their idle fund to increase their returns.
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OKAFOR, A (2021). Effect Of Liquidity Management On The Performance Of Firms In Nigeria (A Study Of Selected Firms In Nigeria). Repository.mouau.edu.ng: Retrieved Nov 25, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-the-performance-of-firms-in-nigeria-a-study-of-selected-firms-in-nigeria-7-2
AMARACHI, OKAFOR. "Effect Of Liquidity Management On The Performance Of Firms In Nigeria (A Study Of Selected Firms In Nigeria)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 22 Nov. 2021, https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-the-performance-of-firms-in-nigeria-a-study-of-selected-firms-in-nigeria-7-2. Accessed 25 Nov. 2024.
AMARACHI, OKAFOR. "Effect Of Liquidity Management On The Performance Of Firms In Nigeria (A Study Of Selected Firms In Nigeria)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 22 Nov. 2021. Web. 25 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-the-performance-of-firms-in-nigeria-a-study-of-selected-firms-in-nigeria-7-2 >.
AMARACHI, OKAFOR. "Effect Of Liquidity Management On The Performance Of Firms In Nigeria (A Study Of Selected Firms In Nigeria)" Repository.mouau.edu.ng (2021). Accessed 25 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-the-performance-of-firms-in-nigeria-a-study-of-selected-firms-in-nigeria-7-2