Cash Management and Economic Performance of Industrial Firms in Nigeria

Abstract

This study examined the effect of cash management on the performance of industrial goods firms in Nigeria.  The specific objectives of the study are to: determine the effect of cash and cash equivalent on the return on assets of industrial goods firms in Nigeria, and evaluate the extent to which cash turnover affects the return on assets of industrial goods firms in Nigeria. Ex-Post Facto research design was employed. A sampled of twelve (12) industrial goods in Nigeria. Data were extracted from the industrial firms of the study annual reports and accounts from 2013 to 2023. Descriptive statistics was used to analyze the data, and multiple regression analysis was used to analyze the data and tested hypotheses respectively. The study revealed that cash and cash equivalent has negative significant effect on return on assets of industrial goods firms in Nigeria. Also cash turnover significantly affected return on assets of industrial goods firms in Nigeria. The study therefore recommended among others that the motive that money and coins equivalent has a massive impact, groups managers need to hold the foremost stability between an excessive amount of coins and too little coins in a corporation to make certain its clean operation and average overall performance.