Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Effect of Cash Flow Activities and Its Influence on Financial Performance of Listed Companies in Nigeria

Odii, Vivian Ijeoma, Prof. J.U.B. Azubike

Abstract

The study examines the effect of cash flow activities and its influence on financial performance of listed companies in Nigeria. The study covered from 2010 to 2022.. The study data were sourced from financial statement of Dangote Flour Mill Nigeria Plc and Nestle Nigeria Plc. The study adopted ex-post facto design. The stated hypotheses were analysed with multiple regressions. The findings of the study revealed that the cash flow from operating activities have positive and significant effect on return on assets of listed companies in Nigeria, cash flow from investing activities has a negative and significant impact on return on assets of listed companies in Nigeria and cash flow from financing activities has a negative and significant impact on return on assets of listed companies in Nigeria. It was recommended that studies companies should as matter of urgency consolidate on their operating activities since these have enhanced the return on assets of the listed companies in Nigeria.

Keywords

Cash flow activitiesfinancial performance and return on assets

References

Aborode, D. E. (2019). Internal control on cash collection. A case of the electricity company of Ghana Ltd, Accra East Region. International Journal of Business and Social Science, 4(9), 217-233. Adelegan, F. S. (2017). An empirical analysis of the relationship between cash flow and Divided charges in Nigeria. Journal of Research in Development 1(1), 1-19. Adelegan, F. S. (2019). Effect of cash flow on a firm’s performance. International Journal of Economics and Finance, 5(5): 148- 158. Adigwe P. D. Timi U. &. Doute A.A. (2025). Cash flow components and corporate performance: evidence from Listed Manufacturing Companies in Nigeria. Journal of Accounting and Financial Management 1(1), 1-38. Albrecht, D. A. (2013). Cash flow management from operating and profitability. International Review of Business Research Papers, 3(1), 279 -300. Anyike, I. U. and Ifunanya, N. L, (2020). Statements of cash flows: Time for change: Financial Analysis Journal. 60(2), 16-32. Bassey, A. W., Dele, E, H (2013). Accruals, accounting-based valuation models and the prediction of equity values. Journal of Accounting Auditing and Finance. 20(6), 311-345 Chikashi, D. H. (2013). The effectiveness of cash management policies: a case study flexible product. International Research journals 2(7) 1299-1305 Efeeloo, F. D, Ofor, U. I. and, Onuorah, T. M. (2020). The cash flow hypotheses for sales growth and firm performance. Strategic Management Journal. 21(2), 455-472. Enow, R. D. (2015). Essentials of managing corporate cash. African Journal of Business Management, 6 (14), 5085- 5092. Gyebi, M. O. and Quain, A. S. (2020). Investment, financial factors and cash flow from America panel data. Journal of American Development, 11(1), 77-108. Ikilidih, Joy N. and Okeke, Loveline Nwakaego (2025). Operating cash flow and financial performance of selected listed companies in Nigeria. International Journal of Economics and Financial Management , 1(1), 1-18 Kenton, T. I. (2018). A study on the effect of free cash flow and profitability current ratio on dividend payout ratio. Journal of Management Science Letters, 4(1):63–70. Kirk, F. U. (2019). Evidence on the role of cash flow for investment. Journal of Monetary Economics 36(3), 541–572. Nangih, W. D, Ofor, I. O. and Ven, A. O. (2020). Cash flow management and manufacturing firm financial performance: A longitudinal perspective. International. Journal of Economics, 14(8), 37–50. Ossai C. C.& Ezeugwu C.I. (2025). Effect of cash flow activities on financial performance of manufacturing firms in Nigeria. SADI International Journal of Management and Accounting, 1(1), 1-18. Rahman, A. V. (2020). Cash flow management utilization by small Medium Enterprises inNorthern Uganda. Research Journal of Accounting, Auditing, Economics and Finance, 84(80), 893– 935. Ufomadu O.A.l & Nwaorgu K. I. (2025). Cash flow activities and financial performance of deposit money banks In Nigeria. International Journal of Innovative Finance and Economics Research 13(3), 345-354 JAFM Uremadu, E. P. (2017). An investigation of comprehensive income and firm performance. Journal of International Money and Finance 20(10), 249- 272. Uwonda, R. P, Okello, E. O. and Okello, M. A. (2019). An investigation of cash flow and corporate performance: A study of selected food and beverages companies in Nigeria. European Journal of Accounting Auditing and Finance Research, 2(7), 77-87.

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT

Cashflow Management and the Performance of Commercial Banks in Nigeria

Author: Jeffrey Ayas Iyakonbogha, Clement E. Ozele

The Nigerian Code of Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria

Author: i, Eneaniofu Daniel Mmaduakonam, ii, Azolike Nkiru Nkechi, iii, Emeter Patrick Okechukwu, iv, Okwor Emmanuel Ejimnkonye