ABSTRACT

This work examines the effect of cash flow components on the financial performance of listed firms in Nigeria. Cash flow statement, as the third main financial statement, shows the resources and consumptions of cash in a business unit during an accounting period. The study adopts ex-post facto research design. The population of the study covers the five listed agro allied companies on the Nigerian stock exchange market but for the constraint of getting financial statement the study looks at 4. The research work adopts the secondary source of data in obtaining all the data needed for the study. Extracted data from the audited financial statements of the sampled companies will be meticulously examined and relevant data extracted from the period 2009-2015 for analysis. The descriptive statistics is used to summarize the collected data in a clear and understandable way using numerical approach. The multiple regression technique using ordinary least square regression (OLS) method is adopted in investigating the relationship between the dependent and independent variables.  It was therefore found that there is no significant effect of cash flow from operations on profitability of listed firms and there is a significant effect of Cash flow from financing activities on profitability of listed firms. The study therefore recommends that firms should maintain a high cash flow ratio as these will give room for them to have access to readily cash which will enhance their business transactions and increase their performance. Conclusively, cash flow from operations has no significant effect on the profitability oflisted firms and cash flow from financing activities has a significant effect on the profitability of listed firms.

TABLE OF CONTENTS

Title Page

Declaration 11

Certification 111

Dedication lV

Acknowledgment v

Table of Contents Vl

List of Tables x

Abstract Xl

CHAPTER ONE: INTRODUCTION

1.1          Background  to the Study 1

1.2       Statement  of the Problem 3

1.3       Objectives  of the Study 4

1.4       Research  Questions 4

1.5         Research  Hypotheses 4

1.6       Significance   of the Study 5

1. 7       Scope of the Study 5

1.8        Limitations    of the Study 6

CHAPTER TWO:  REVIEWOF RELATED LITERATURE

2.1 Conceptual  Framework 7

2.1.1 Concept  of Cash Flow 10

2.1.2 Factors  That Affect  Liquidity  Requirement   of a Company 13

2.1.3 Nature  and Size of      Business 13

2.1.4 Business   Fluctuations 13

2.1.5 Production  Policy/  Just-In-Time 14

2.1.6 Operating  Efficiency 14

2.2 Theoretical   Framework 15

2.2.1 The Relatively  Relaxed  Theory: 15

2.2.2 The Aggressive   Theory: 15

2.3 Empirical  Review 15

CHAPTER THREE: RESEARCH METHODOLOGY

3 .1 Research  Design 24

3 .2 Population  of the Study 24

3.3 Sample  Size and Sampling   Techniques 25

3 .4 Sources  of Data 25

3.5 Data Analysis  Technique 25

3.6 Definition  of Variables 26

3.6.1 Independent  Variable 26

3 .6.2 Dependent  Variable 26

3. 7 Model  Specification 26

3.8 Limitation  of the Methodology 27

CHAPTER FOUR: DATA PRESENTATOIData Presentation N AND ANALYSIS

4.2 Data Analysis 28

4.2.1      Data Validity  Test                                                                                                                28

4.2.2    Descriptive   Statistics                                                                                                                                   29

4.2.3      Regression  of the Estimated  Model  Summary                                                                  31

4.2.4      Regression   Results                                                                                                                32

4.3         Test  of Research  Hypotheses                                                                                               33

4.3.1. Test of Research Hypothesis One 33

4.3.2. Test of Research Hypothesis Two 33

4.3.3. Test  of Research Hypothesis Three 33

4.4 Discussion  of Fi ndings 34

CHAPTER FIVE:  SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary of Findings 36

5.2 Conclusions 36

5.3 Recommendations 37

5.4 Limitations  of the Study 37

5.5 Suggestions for Further Research 38

REFERENCES

APPENDIX