Cash Management on Corporate Performance of Services Firms in Nigeria
Abstract
This study ascertained the effect of cash management on corporate performance of service firms in Nigeria, using cash turnover and cash ratio to proxied cash management while profit margin represents corporate performance. Ex-Post Facto research design was used by the study. A sample of five service firms was selected by the study. Data were extracted from the firms audited annual reports and accounts from 2014 to 2023. Data were analyzed with descriptive statistics and regression analysis was used to test the two hypotheses. The study showed that cash turnover has a negative insignificant effect on profit margin of service firms in Nigeria, while cash ratio has a positive and significant effect on profit margin of service firms in Nigeria. The study advocated that managers of the corporations in Nigeria can create superb price for the wealth of shareholders via lowering the cash communication cycle ratio to a minimal stage. this will be done by using enhancing the inventory manage technique and account receivable have to be collected in line with the employer debt policy.
Keywords
Cash turnover
Cash ratio
Profit margin and Corporate performance
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