Abstract
The focal point of this research was to establish the liquidity-viability link in quoted non-financial firms in Nigeria. Liquidity improves the profitability of firms but not its solvency. The solvency and performance of a firm exclusively anchor on the firm's capacity to realize the
Highlights
Industrial sector proficiency is vital to the stability of any nation's economy
The findings of this study revealed diverse results; [6] in Kenya [7] in Ghana [58] in Morocco and [59] in Nigeria reported a positive nexus. [8] in Sri Lanka telecommunication sector reported a diverse result among quoted firms on cash position and profitability. [9] in Pakistani reported a negative result
The following hypotheses are formulated for testing based on reviews of the extant literature on the cash flow liquidityfirms’ financial performance nexus in the industrial sector: Hypothesis 1: There is no relationship between cash liquidity and firms’ financial performance in the industrial sector in Nigeria
Summary
Industrial sector proficiency is vital to the stability of any nation's economy. Instability caused by both industrial and non-industrial factors of Covid-19 pandemics among others have far-reaching implications on the overall economy. Empirical findings from studies in Nigeria indicate that most quoted firms in Nigeria faced the ultimate task of equitable management of cash resources to improve their production and liquidity prowess This is evidence in the delisting of various firms such as the African Paints (Nigeria) PLC, MTI PLC, UTC PLC, Nigerian Ropes Plc, West African Glass Industries PLC, Alumaco PLC, West African Aluminum PLC, Nigeria Wire Industries PLC, OLUWA Company PLC among others by the regulators, as a result of unrectified anomalies of which low liquidity is central. The Nigerian Ropes Plc, West African Glass Industries PLC, Alumaco PLC, West African Aluminum PLC, Nigeria Wire Industries PLC were all legally suspended from the stock market before their delisting The exclusion of these firms by regulators from the stock market for various reasons lend credence to the objective of this paper, which is to investigate cash flow management and financial performance of non-financial quoted firms in Nigeria. The aforementioned contributions are novel as they are scarce in most studies conducted within the Nigerian academic research climate
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