LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED FOOD PRODUCTS COMPANIES IN NIGERIA

Abstract

The study examined liquidity management practices and financial performance of listed food companies in Nigeria. The objectives of the study among others were to identify the relationship between commercial paper management and return on assets of listed food companies in Nigeria, and also to evaluate trade receivable management and return on assets of listed food companies in Nigeria. The study adopted ex-post facto design. The return on assets population for the study was nine (9) listed food products companies in the Nigerian Stock Exchange. The instrument for this study was secondary data. The formulated research questions were analyzed with descriptive statistics. The hypotheses were tested using the least square panel data regression analysis with aid of E-view (10). The findings of the study were that there is a significant relationship between commercial paper management and return on assets. Also, there is a significant relationship between trade receivable management and return on asset of listed food companies in Nigeria. Based on the finds the following recommendation is made among others: Liquidity management practices such as commercial paper management practices, trade receivable management practices, and trade payables management practices would positively impact on performance of listed food products companies.