CASH MANAGEMENT AND CORPORATE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study examines the relationship between cash management and corporate performance
of deposit money banks in Nigeria. Given the pivotal role of liquidity management in
enhancing financial stability and operational efficiency, the study looked into how listed
deposit money banks in Nigeria performed financially between 2014 and 2020 in respect to
their cash management. The study was guided by an ex-post facto research design. The
population of the study was five deposit money banks listed in the Nigeria Exchange Group.
Five of the banks were selected using purposive sampling technique. The data used in this
study were sourced from annual reports and statement of accounts of the selected deposit
money banks. Cash and cash equivalent was employed as the independent variables while net
profit margin was employed as the dependent variable. The linear regression model was
employed in analyzing the data. the study concludes that there is a positive and significant
relationship between cash management and corporate performance of listed deposit money
banks in Nigeria. The study recommended that deposit money bank should maintain an
optimal level of cash on the basis that idle asset does not produce adequate returns.