A TIME SERIES ANALYSIS OF THE EFFECT OF CASHFLOW MANAGEMENT ON FINANCIAL PERFORMANCE OF BREWERY FIRMS IN NIGERIA ( A STUDY OF NIGERIA BREWERIES PLC)

ABSTRACT This study examined the effect of Cashflow Management On financial performance Of Brewery Firms in Nigeria. Specifically, the study determined the effect of Operating, investing, financing cash flows on return on asset of Brewery firms in Nigeria. An ex –post facto research design approach was adopted for the study. The population of this study comprised of seven (7) listed brewers in Nigeria. Using time series data for the period of six (6) years (2016 to 2021), Nigerian Breweries Plc was purposively chosen as the sample size based on its key position as one of the largest on asset base and liquidity position in Brewery sub-sector of manufacturing sector. Secondary data were carefully sourced which includes the annual report of the companies from 2016 to 2021 financial years obtained from Nigeria Exchange group (NGX) and the company’s website. The data collected were presented and analyzed using tables, descriptive and inferential statistics. Three hypotheses were formulated and tested in the course of this study. Regression analysis was used to test for statistical significance of the effects of cash flow management on financial performance of Brewers in Nigeria. The results showed that there is significant effect of operating cash flow on the return on asset of Brewery firms in Nigeria. The findings further revealed that there is no significant effect of investing cash flow on the return on asset of Brewery firms in Nigeria. Finally, the result established also that there is no significant effect of financing cash flow on the return on asset of Brewery firms in Nigeria. Consequent upon the findings, this study recommends among others; that management of firms should develop and strengthen internal control over the collection of realized revenue.