EFFECT OF FIRM SIZE ON CASH HOLDINGS OF FOOD AND BEVERAGES FIRMS IN NIGERIA

NOKE, Gibson Chinedu and OLIVER, Inyiama and UDEH, Sergius Nwannebuike (2024) EFFECT OF FIRM SIZE ON CASH HOLDINGS OF FOOD AND BEVERAGES FIRMS IN NIGERIA. International Research Journal of Accounting, Finance and Banking (IRJAFB), 15 (5). pp. 1-10. ISSN 2836-7944

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Abstract

This study investigated the impact of firm size on cash holdings within the manufacturing sector of Nigeria, focusing specifically on food and beverage firms. The independent variables were total assets and total turnover, while the dependent variable was cash holding. Data were sourced from the published Annual Financial Statements of five food and beverage manufacturing firms listed on the Nigerian Exchange Group over a ten-year period (2008-2017).The study employed ex-post facto research design. Panel data analysis was with Generalized Method of Moments (GMM) estimator model. The results from the fixed regression model reveal that turnover exhibited a positive but non-significant effect on cash holding, while total assets showed a negative but significant impact. These findings underscored the influence of firm size on cash management practices within the food and beverage industry in Nigeria, suggesting the importance of maintaining optimal cash levels to meet immediate financial needs while ensuring long-term solvency. It was concluded that a significant correlation exist between firm size and cash holding decisions. The study recommended, among others, that firms should carefully plan their total asset to enhance productivity and control acquisition costs

Item Type:	Article
Subjects:	H Social Sciences > HJ Public Finance
Divisions:	Faculty of Management and Social Sciences
Depositing User:	MRS KELECHI OBI
Date Deposited:	20 May 2024 08:55
Last Modified:	20 May 2024 08:55
URI:	http://eprints.gouni.edu.ng/id/eprint/4314

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