Firms Growth and Cashflow Analysis: An Empirical Analysis of Nigeria Firms

  • Ihenyen, Confidence Joel Department of Accounting, Niger Delta University, Wilberforce Island, Bayelsa State
  • Banigo Macauly Gilbert Department of Accounting, Niger Delta University, Wilberforce Island, Bayelsa State
  • Mueni Department of Accounting, Niger Delta University, Wilberforce Island, Bayelsa State
DOI: https://doi.org/10.17605/OSF.IO/HQU8T
Keywords: Cashflow, Profit Growth, Firms Growth

Abstract

This study explores the nexus between firm’s growth and cashflow analysis of Nigeria firms. It utilized an ex post facto research design in investigating the relationship between cashflow analysis and firm growth in consumer goods firms in Nigeria. Data on cash flow, revenue growth, and growth of profit were collected from the financial statements of the firms. Correlation and regression analyses were utilized to analyze the data and testing of the hypothesis. From the results, it was revealed that there is a weak positive correlation between firm growth and net cash flow, and a significant positive nexus between net cash flow and firm growth after controlling for the effect of profit growth. The research study also found a trade-off between net cash flow and profit growth. On the premise of these findings, it was recommended that companies in Nigeria should prioritize maintaining a healthy cash flow to facilitate growth and balance their financial priorities to maximize their growth potential. These findings can help inform business decisions and policies aimed at promoting economic growth in the country.

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Published
2023-05-10
How to Cite
Joel , I. C., Gilbert, B. M., & Mueni. (2023). Firms Growth and Cashflow Analysis: An Empirical Analysis of Nigeria Firms . Central Asian Journal of Innovations on Tourism Management and Finance, 4(5), 32-41. https://doi.org/10.17605/OSF.IO/HQU8T
Issue
Vol 4 No 5 (2023): May 2023
Section
Articles

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