Relevance of Cash Flow Activities to Profitability of Manufacturing Firms in Nigeria
Authors: Ugwu, Timothy Chidubem, Oliver, I. Inyiama
Journal: International Journal of Advanced Finance and Accounting (IJAFA), ISSN 2765-8457
Citation: IJAFA 2(4), 2021-08-07.
DOI: 10.70878/ijafa.2021.6bd3a2c1
PDF: Download full-text PDF
Type: Original Research
Abstract
This study evaluates the relevance of cash flow activities to profitability of manufacturing firms in Nigeria. Whereas the specific objectives were to: Examine the relationship between net cash flow from operating activities and profit for the year of manufacturing firms in Nigeria and Ascertain the relationship between net cash flow from investing activities and profit for the year of manufacturing firms in Nigeria. An ex-post facto was adopted for the study. The adoption of the ex-post facto research design was informed by the fact that the work relied on historical data. The researcher made use of secondary data. The data is Panel data ranging from (2008 – 2017), there were extracted from the annual reports and accounts of the selected listed manufacturing firms on Nigeria Stock Exchange. E-views 9.0 Software was used to analyzed the data. The result revealed that, net cash flow from operating activities have positive and significant relationship with profit for the year of manufacturing firms in Nigeria between 2008 and 2017. The sign of the correlation coefficient of 0.784528 is positive, and the probability of 0.0000
Keywords
Profitability, Manufacturing Firms, Net Cash Flow, Operating Activities Authorship 1 Ugwu, Timothy Chidubem, 2 Prof. Oliver, I. Inyiama
Full Text
This study evaluates the relevance of cash flow activities to profitability of manufacturing firms in Nigeria. Whereas the specific objectives were to: Examine the relationship between net cash flow from operating activities and profit for the year of manufacturing firms in Nigeria and Ascertain the relationship between net cash flow from investing activities and profit for the year of manufacturing firms in Nigeria. An ex-post facto was adopted for the study. The adoption of the ex-post facto research design was informed by the fact that the work relied on historical data. The researcher made use of secondary data. The data is Panel data ranging from (2008 – 2017), there were extracted from the annual reports and accounts of the selected listed manufacturing firms on Nigeria Stock Exchange. E-views 9.0 Software was used to analyzed the data. The result revealed that, net cash flow from operating activities have positive and significant relationship with profit for the year of manufacturing firms in Nigeria between 2008 and 2017. The sign of the correlation coefficient of 0.784528 is positive, and the probability of 0.0000