ABSTRACT

This study examined the Effect of Reserves and Capital inflow in the performance of organizations. The study adopts survey research design. Incremental inflow and revenue reserve were collected for a period of four years. This was complemented with survey data obtained from 38 respondents using research designed questionnaires validated by experts. Descriptive statistics, correlation and regression model were used in analyzing the data. The results indicate that revenue reserve and capital inflow have a significant relationship with the performance of 3.716 capital and 2.887 reserve significant at 5% level shows that incremental inflow and revenue reserves are the major effect of corporate performance and investment capabilities. The study therefore recommends that sustainable incremental inflew and Optimal level of revenue reserves will keep the corporate performances at top level. Public organization should design a policy framework based on their financial obligation to make adequate provision to generate funds sufficient enough by issuing share to the public while minimizing debt liabilities when necessary.