Cash positioning and financial performance of telecommunication firms in Nigeria. Olulu-Briggs, O. V., & Wobo, H. O.

This study examined the influence of cash positioning on performance of telecommunication firms in Nigerian. The study relied on secondary data sourced from the financial statements of four telecommunication firms from 2010 to 2020. A total 44 observations were made. The study employed unit root to test for variable stationarity, the Hausman test to check for explanatory variable independence from random effects, and the Fixed Panel Ordinary Least Square for the influence of the predictor variable on the criterion variable at 5% level. The panel unit root test reveals that all variables are integrated at the level. The Hausman test demonstrates that random effects are correlated with explanatory elements The Fixed Panel OLS shows that the ratios of cash and its equivalent to sales and current liabilities have a negative and insignificant impact on ROE, whereas the ratio of cash and its equivalent to total assets has a positive but insignificant impact on ROE. The study thus concludes that cash positioning in terms of total asset positively affects return of equity; and recommends that telecommunication firms that aspire to achieve improved financial performance should delay payments to suppliers so that these payables can serve as a source of financing. Telecommunication firms must however, be minded that non-payment of debt obligations as at when due may send erroneous signals to investors about their liquidity position. Keywords: Cash positioning, financial performance, ratio of cash, telecommunication firms