EFFECT OF CASH MANAGEMENT STRATEGY ON THE LIQUIDITY ND PROFITABILITY OF SELECTED MANUFACTURING COMPANIE IN ABUJA, NIGERIA

Date

2019-09-18

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DEPARTMENT OF BUSINESS ADMINISTRATION FACULTY OF ADMINISTRATION NASARAWA STATE UNIVERSITY, KEFFI.

Abstract

The study examined the effect of cash management strategy on the liquidity and profitability of selected manufacturing companies in Abuja metropolis. To answer the research questions and test formulated hypotheses, the study utilised questionnaire in gathering data. The questionnaire was administered on five (5) Managers responsible for cash management in five selected manufacturing companies in Abuja. All the three hypotheses were tested with Pearson product moment correlation. Results showed, that there is a significant and positive relationship between effective cash management and profitability of manufacturing companies; that there is significant relationship between liquidity and profitability of manufacturing companies and lastly, the internal control system reduces risk, resource waste and frauds. Conclusively, the study confirmed that, without proper cash management strategies in place, the business is less likely to be profitable and sustainable for the future, and recommended that manufacturing firms pick the right cash management provider who can co-ordinate the physical and technological installation of the system and can significantly expedite and smoothen the process of ensuring profit maximization. i Vll

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Citation

BEING A DISSERTATION SUBMITTED TO THE SCHOOL OF POST GRADUATE STUDIES, NASARAWA STATE UNIVERSITY, KEFFI, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTERS DEGREE (LL.M) IN LAW.