Determinants of corporate cash holdings in the Nigerian capital market

This research investigates factors that determine corporate cash holdings of listed companies on the Nigerian Stock Exchange (NSE) over the period of 2005-2019. Although, a number of factors have been examined by prior studies, however, factors affecting companies that are financially constrained di...

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Main Author:	Ishola, Abdurraheem Ibraheem
Format:	Thesis
Language:	eng eng
Published:	2020
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/10349/1/depositpermission_s825429.pdf https://etd.uum.edu.my/10349/2/s825429_01.pdf
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id	my-uum-etd.10349
record_format	uketd_dc
spelling	my-uum-etd.103492023-03-01T04:13:37Z Determinants of corporate cash holdings in the Nigerian capital market 2020 Ishola, Abdurraheem Ibraheem Badru, Bazeet Olayemi Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance This research investigates factors that determine corporate cash holdings of listed companies on the Nigerian Stock Exchange (NSE) over the period of 2005-2019. Although, a number of factors have been examined by prior studies, however, factors affecting companies that are financially constrained differ from non-financially constrained companies have received limited attention. Factors that are examined in this study are financial constraints, cash flow, leverage, company size, age and performance, networking capital, asset utilization, tangibility, growth opportunities and dividend payout. This study uses a static and dynamic panel regression technique to identify the determinants of corporate cash holdings in Nigeria. Results of this study reveal that financial constraints, asset utilization, cash flow to asset ratio, networking capital, tangibility and growth opportunities are significant determinants of corporate cash holdings of companies listed on the NSE. It further shows that cash flow has a negative relationship with corporate cash holdings which is supported by the trade-off theory. Further, company size has a positive relationship with corporate cash holdings which is supported by the pecking order theory. Meanwhile, growth opportunity has a negative relationship with corporate cash holdings and is in line with the free cash flow theory. The major contribution of the research is that it adds and improves the current literature on the factors that determine the corporate cash holdings for an emerging market like Nigeria. 2020 Thesis https://etd.uum.edu.my/10349/ https://etd.uum.edu.my/10349/1/depositpermission_s825429.pdf text eng staffonly https://etd.uum.edu.my/10349/2/s825429_01.pdf text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Badru, Bazeet Olayemi
topic	HG Finance
spellingShingle	HG Finance Ishola, Abdurraheem Ibraheem Determinants of corporate cash holdings in the Nigerian capital market
description	This research investigates factors that determine corporate cash holdings of listed companies on the Nigerian Stock Exchange (NSE) over the period of 2005-2019. Although, a number of factors have been examined by prior studies, however, factors affecting companies that are financially constrained differ from non-financially constrained companies have received limited attention. Factors that are examined in this study are financial constraints, cash flow, leverage, company size, age and performance, networking capital, asset utilization, tangibility, growth opportunities and dividend payout. This study uses a static and dynamic panel regression technique to identify the determinants of corporate cash holdings in Nigeria. Results of this study reveal that financial constraints, asset utilization, cash flow to asset ratio, networking capital, tangibility and growth opportunities are significant determinants of corporate cash holdings of companies listed on the NSE. It further shows that cash flow has a negative relationship with corporate cash holdings which is supported by the trade-off theory. Further, company size has a positive relationship with corporate cash holdings which is supported by the pecking order theory. Meanwhile, growth opportunity has a negative relationship with corporate cash holdings and is in line with the free cash flow theory. The major contribution of the research is that it adds and improves the current literature on the factors that determine the corporate cash holdings for an emerging market like Nigeria.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Ishola, Abdurraheem Ibraheem
author_facet	Ishola, Abdurraheem Ibraheem
author_sort	Ishola, Abdurraheem Ibraheem
title	Determinants of corporate cash holdings in the Nigerian capital market
title_short	Determinants of corporate cash holdings in the Nigerian capital market
title_full	Determinants of corporate cash holdings in the Nigerian capital market
title_fullStr	Determinants of corporate cash holdings in the Nigerian capital market
title_full_unstemmed	Determinants of corporate cash holdings in the Nigerian capital market
title_sort	determinants of corporate cash holdings in the nigerian capital market
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2020
url	https://etd.uum.edu.my/10349/1/depositpermission_s825429.pdf https://etd.uum.edu.my/10349/2/s825429_01.pdf
_version_	1776103797204975616

Determinants of corporate cash holdings in the Nigerian capital market

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