EFFECT OF CASH FLOW MANAGEMENT ON FINANCIAL PERFORMANCE OF NON-FINANCIAL LISTED FIRMS ON NIGERIA EXCHANGE GROUP
Keywords:
Cash Flow Management, Financing Cash Flow, Financial Performance, Operating Cash flow, Return on EquityAbstract
This study explored the effect of cash flow management on financial performance of listed non-financial firms in Nigeria. This study specifically seeks to ascertain the effect of operating cash flow and financing cash flow on return on equity of listed non-financial firms in Nigeria. Ex post facto research design was adopted for this study. The population of the study was ninety - five (95). Purposive sampling technique was used to select seventy–four (74) listed non-financial firms as sample population. Data were obtained from secondary sources for a period of thirteen years covering periods of 2011-2023. The data obtained were analyzed accordingly with the use of Ordinary Least Square (OLS) Multiple Regression Technique. From the analysis and results of this study, it was found amongst others that, operating cash flow has significant effect on return on equity while financial cash flow has no significant effect on return on equity of listed non-financial firms in Nigeria. Based on the findings of this study, it is recommended that since, operating cash flows has significant effect on the financial performance of selected non-financial firms, management should maintain improve on operating cash flow management to continue to boost return on equity. Also since financing cash flow has no significant effect on return on equity, management should re-appraise their financing cash flows, management should also be encouraged to reduce their means of changing accounting estimates for doubtful debts, method of depreciation because they do not contribute to firms return on equity.
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