Analysing the Effect of Net Cash Flow from Financing Activities on Liquidity of United Bank for Africa (UBA)

Abstract

This work investigated the analyse the effect of cash flow from financing activities of United Bank for Africa (UBA). This study adopted a design known as the ex-post facto research design using secondary data from the Nigeria Bureau of Statistics for the period of 2009 to 2021.Ordinary Least Square Regression analysis was used to determine the effect of net cash flow from financing activities and how it effect liquidity of United Bank for Africa. Simple regression was used as technique of data analysis collected through secondary source. Loan to deposit ratio was used as proxy for bank liquidity while the independent variable was net cash flow from financing activities (nCFF) of United Bank for Africa. The study revealed that there is positive and insignificant effect of nCFF on the liquidity position of United Bank for Africa. The study then recommends that preparers of financial statements should view the statement of cash flow as an important component of the annual report, while investors should conduct a careful analysis of the statement of cash flow in making investment decisions.

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