IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 10 2023
DOI: https://doi.org/10.56201/jafm.v9.no10.2023.pg13.22

---

Cash Management and Financial Performance Listed Construction Companies in Nigeria

Eta Ekpenyong Ekpenyong PhD

---

Abstract

This study investigated the relationship between cash management and financial performance of listed construction companies on Nigerian Exchange Group. Specifically, the objectives of the study are to examine the relationship between cash management and earning per share, ascertain the relationship between cash management and net profit. The ex-post facto research design was used. The study population comprised Six (6) listed construction companies as listed on the Nigeria Exchange Group in 2021. The entire population was used as the sample size, using the census approach. Data was source through the annual report of listed construction companies for 2011-2020. Pearson correlation and multiple regression was used in data analysis with the aid of Stata12 software. The study revealed that there is no relationship between cash management and earnings per share of listed construction companies on the Nigerian Exchange Group. There is no relationship significant between cash management and net profit of listed construction companies on the Nigerian Exchange Group. The study concluded that there is no significant relationship between cash management and financial performance. The study recommended that management should give consideration to cash management which play a critical role in increasing the financial performance of the company; Attention should be taken on management of current ratio as well as investment of excess liquidity in short-term assets such as treasury bills for an enhanced net profit.

keywords:

Cash Management, Financial Performance, Earning Per share, Net Profit.

---

References:

Adeagbo, A. (2014). Overview of the building and construction sector in the Nigerian economy,
JORIND, 12(2), 34-54
Aibinu, A., & Jagburo, G. (2002) The effect of construction delays. Business and Society, 20(3),
25-35.
Army, D., Will, K., & Kimberly, O. (2021) Cash management definition. Gee Publishing
Denver, A. (2005) Effect of cash management on financial performance of private secondary
schools in Mogadishu. International Journal of Accounting, 41(3), 262-289.
Niresh, A. (2012). Examined the relationship between working capital management and financial
performances
of
listed
firms
in
Sri
Lanka.
https://www.myaccountingcourse.com/financial-ratios/inventory-turnover-ratio.

Olubimbola, T., & Tayo, F. (2018). Financial performance of locally owned construction firms in
south west Nigeria. Journal of Business Ethics, 12(3), 263–280

DOWNLOAD PDF

---

Back