CASH CONTROL AND ECONOMIC PERFORMANCE OF SELECTED AGRICULTURAL FIRMS IN NIGERIA

Abstract

The study investigated the effect of cash control on economic performance of selected quoted agricultural firms in Nigeria for the period 2013-2021. Four research questions were developed to guide the study and a corresponding four hypothesis was formulated for the study. The study adopted the ex-post facto research design. The population of the study included all quoted agricultural firms on the Nigerian exchange group (NXG) as at 31st December 2023. The study relied on secondary sources of data which was obtained from Nigerian exchange group (NXG) and compiled by Machame ratios (www.machameratios.com). The ordinary least square (OLS) regression analysis was employed in validating the hypotheses of the study. Findings emanating from the study reveals that there is no significant influence of cash to book value of asset on Tobin’s q of quoted agricultural firms in Nigeria (P > 0.05); there is no significant effect of cash conversion cycle on Tobin’s q of quoted agricultural firms in Nigeria (P > 0.05). Consequent on the findings, the study therefore recommended amongst others that quoted agricultural firms in Nigeria need to strengthen liquidity management practices, recognizing the non-statistically significant influence of cash to book value of assets on return on assets.