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Effect of Cash Flow on Going Concern of Technology Industry: A Study of Amazon Inc.

SUNDAY, Michael Nta, NSENTIP, Ese Bassey

Abstract

This study examined the effect of cashflow on going concern of technology industry: study of Amazon inc., which covered the period of 2013-2022. This study tested a number of cashflow proxies (cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities) on going concern, using 30 technology industries listed on NASDAQ as the study population. The study however, focused on only Amazon Inc. Secondary data were extracted from the annual reports of Amazon Inc. for the purpose of analysis. In testing for the effect of cashflow on going concern of technology industry, the researcher used Ordinary Least Square (OLS) regression analysis. The results obtained revealed that operating activities have significant positive effect on going concern of Amazon inc as one of the technology companies listed on NASDAQ; investing activities have no significant effect on going concern of Amazon inc as one of the technology companies listed on NASDAQ; and financing activities have a significant positive effect on going concern of Amazon inc as one of the technology companies listed on NASDAQ. Thus, it was concluded that cashflow has a significant effect on going concern of Amazon inc as one of the technology companies listed on NASDAQ. Therefore, it was recommended that technology firm under study should maximize operating activities efficiency, reassess investment strategies and also optimize financing activities to maintain their financial health as well as their going concern status.

Keywords

Cash flowsgoing concernoperating activitiesinvesting activitiesfinancing activities.

References

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