ASSESSING THE IMPACT OF CREDIT FINANCING ON CASH FLOW PERFORMANCE: A STUDY OF SELECTED QUOTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The study investigated the effect of credit financing on cash flow performance of selected quoted deposit money banks in Nigeria for the period 2011-2022. Three research questions were developed to guide the study and a corresponding three hypotheses was formulated for the study. The study adopted the ex-post facto research design. The population of the study included all deposit money banks quoted on the Nigerian Stock Exchange (NSE) as at 31st December 2022. The study relied on secondary sources of data which was obtained from Nigerian exchange group (NGX) as at 31st December 2022. The multiple regression analysis was employed in validating the hypotheses of the study. Findings emanating from the study reveals that there is no significant effect of capital gearing ratio on net operating cash flows of selected quoted deposit money banks in Nigeria; there is no significant effect of income gearing ratio on net operating cash flows of selected quoted deposit money banks in Nigeria; there is significant effect of operating gearing ratio on net operating cash flows of selected quoted deposit money banks in Nigeria. Consequent on the findings, the study therefore recommended amongst others that stakeholders should prioritize initiatives aimed at improving operational efficiency, streamlining processes, embracing technological advancements, and optimizing resource utilization can lead to a positive influence on cash flow, ensuring the financial robustness of selected quoted deposit money banks in Nigeria.