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.