EFFECT OF FIRM SIZE ON CASH HOLDINGS OF FOOD AND BEVERAGES FIRMS IN NIGERIA
Abstract
This study investigated the impact of firm size on cash holdings within the manufacturing sector of Nigeria, focusing specifically on food and beverage firms. The independent variables were total assets and total turnover, while the dependent variable was cash holding. Data were sourced from the published Annual Financial Statements of five food and beverage manufacturing firms listed on the Nigerian Exchange Group over a ten-year period (2008-2017).The study employed ex-post facto research design. Panel data analysis was with Generalized Method of Moments (GMM) estimator model. The results from the fixed regression model reveal that turnover exhibited a positive but non-significant effect on cash holding, while total assets showed a negative but significant impact. These findings underscored the influence of firm size on cash management practices within the food and beverage industry in Nigeria, suggesting the importance of maintaining optimal cash levels to meet immediate financial needs while ensuring long-term solvency. It was concluded that a significant correlation exist between firm size and cash holding decisions. The study recommended, among others, that firms should carefully plan their total asset to enhance productivity and control acquisition costs
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Firm Size, total assets, total turnover, food and beverage firms, Nigeria.Downloads
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Copyright (c) 2024 Noke, Gibson Chinedu, Oliver Inyiama, PhD , Sergius Nwannebuike Udeh, PhD
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