Authors: Aroh, Joseph Chike, Aroh, Nkechi N. and Augustine Nwekemezie Odum
Department of Accountancy, Federal Polytechnic, Oko, Nigeria
Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
This study x-rays the relationship existing between Cash Asset Holding Management and company performance (Profitability) in Nigeria. The study uses multiple regression technique on 17 sampled firms employing data available on each sampled company’s audited annual report for the period 2010 to 2016. The empirical evidence shows that Cash Holding Management and Firm Performance are positively related. It follows along with studies which argued that corporate cash holding increases the ability on competition in the financial markets. It was also established that the negative influence of fixed assets on firm performance could be attributed to the depreciation (wear-and-tear) and the underestimation of the fixed assets of firms. Based on these findings, the study recommended that company managers place more emphasis on the cash position of their firms at all times, since a stable cash position ensures that the firms competently meet up with their current liabilities.
Keywords: Cash Holding, Firm performance, Management, Financial market