CASH MANAGEMENT PRACTICES AND FINANCIAL SUSTAINABILITY OF LISTED TRANSPORTATION COMPANIES IN NIGERIA

Abstract

This study investigated the effect of cash management practices on financial sustainability of listed transportation companies in Nigeria. The specific objectives of the study was to investigate the effect of cash conversion cycle, creditors payment period, cash and cash equivalent on financial assets growth rate of listed transportation companies in Nigeria. The study used causal-comparative research design. Target population comprises of all the six listed transportation companies in Nigeria which was sampled to the same six transportation companies in Nigeria using Census sampling technique. Secondary data was used and it was source from annual reports and statement of accounts of the selected firms between 2015 and 2024. The study adopted Descriptive statistics, Augmented Dickey Fuller (ADF), Unit Roots Tests, VAR Lag Order Selection Criteria, Co-Integration, Autoregressive Distributed Lag (ARDL) model, Residual Diagnostic Tests, Wald Test. The findings showed that cash conversion cycle has significant effect on financial assets growth rate of listed transportation companies in Nigeria in the long run but in term of short run cash conversion cycle has no significant effect on financial assets growth rate of listed transportation companies in Nigeria, creditor payment period has significant effect on financial assets growth rate of listed transportation companies in Nigeria in the long run but in term of short run creditor payment period has no significant effect on financial assets growth rate of listed transportation companies in Nigeria, and cash and cash equivalent has no significant effect on financial assets growth rate of listed transportation companies in Nigeria in the long run and short run. It was concluded that there is significant effect of cash management practices on financial sustainability of listed transportation companies in Nigeria from 2015 to 2024 in the long run while there is an insignificant effect of cash management practices on financial sustainability of listed transportation companies in Nigeria from 2015 to 2024 in the short run. The study recommended amongst others that Management of listed transportation companies should optimize their cash conversion cycle to improve long-term equity growth.