ABSTRACT

The study examined the effect ofliquidity management on the performance oflisted banks in Nigeria. The specific objectives includes to: ascertain the effect of Current and acid test ratios on return on capital employed oflisted banks in Nigeria; determine the effect of Current and acid test ratios on earnings per share of listed banks in Nigeria and examine the effect ofCurrent and acid test ratios on return on equity oflisted banks in Nigeria. To achieve the objectives of the study, ex-pose facto research design was adopted The researcher adopted secondary data in getting the required information. In testing the hypothesis simple regression analysis was used The findings in chapterfour reviewed that a Liquidity ratios which captures using acid test ratio and liquidity ratios jointly have significant effect on returns on capital though the individual variable do not have specific significant effects on returns on capital employed. This therefore shows that the two independent variables can explain to a significant extent the changes that occur in returns on capital employed. In conclusion, there is significant relationship between working capital ratio and earnings per share the selected banks. Researcher recommends that managers ofbanks in Nigeria should ensure effective working capital management, and emphasize an optimal working capital levels in their respectivefirms.