Effects of Cash Flow on Corporate Sustainability in Nigeria and Ghana

Abstract

This study evaluates the effect of cash flow on corporate survival of manufacturing firms in Nigeria and Ghana for the period of five years (2016 – 2020). The study was based on Ex-Post Facto research design and used panel data collected from the financial report of the firms used in the study. The data collected was analyzed using the panel regression analysis, however, some preliminary analysis like descriptive statistics and correlation analysis was carried out on the data. The result reveals that about 65.7% of corporate survival in manufacturing companies in Nigeria and Ghana can be attributable to the level of cash flow. The study found that cash flow from investing activities has a negative and insignificant effect on corporate survival of the manufacturing firms in Nigeria and Ghana. The study also revealed that cash flow from operating activities has positive and significant effect on the survival of the manufacturing firms in quoted in Nigeria and Ghana. The study recommends that managers of manufacturing companies in Nigeria and Ghana should increase their funding of operating activities, as the increment will positively drive the Cash flow from operating activities and enhance their chances of the survival of their firm.