CASH MANAGEMENT PRACTICES AND FINANCIAL
PERFORMANCE OF LISTED BREWERY COMPANIES IN NIGERIA

JONAH, Ngbomowa Moses
Department of Accountancy, Faculty of Management Sciences
Rivers State University Port Harcourt
ngbomowa.jonah@ust.edu.ng
AARON, Clinton Chika
Department of Accountancy, Faculty of Management Sciences
Rivers State University Port Harcourt
aaron.clinton@ust.edu.ng
JACK, Obiazi Tubotamuno-Ojas
Department of Accountancy, Faculty of Management Sciences
Rivers State University Port Harcourt
obiazi.ojas@ust.edu.ng
ABSTRACT
The study examined the relationship between cash management practices and financial performance of
listed Breweries in Nigeria. The study adopted the use of secondary panel data of 4 Breweries in the
Nigeria Stock Exchange for a period of ten years (2012-2021). The study used ex-post facto research
design. The study was anchored on the cost trade-off theory of liquidity. The analysis was done using
least square regression aided by Statistical Package for Social Sciences (SPSS) Version 22.0. The results
revealed a positive relationship between the cash conversion cycle and financial performance variables
(NPM and ROCE) in listed Breweries in Nigeria. The study also found that creditor’s payment period
had a negative significant relationship with net profit margin and no relationship with return on capital
employed. The study concluded that a significant relationship exists between cash management
practices and financial performance of listed Breweries in Nigeria; and recommends that managers of
Breweries can create value for the wealth of shareholders by reducing cash conversion cycle to a
minimum level.
Keywords: Cash management practices, financial performance, creditors’ payment period, cash
conversion cycle, net profit margin, return on capital employed