Author : Okafor Justina Obiageli, Ekwe Michael, Azubike Joseph, Ekeagwu Innocent Chukwuemeka

The study examined the effect of cash flow components on the performance of commercial banks in Nigeria. Specifically, the study examined the effect of cash flow components on Return on assets of commercial Banks in Nigeria, evaluated the effect of the cash flow components on Earnings per share (EPS) of commercial Banks in Nigeria and determined their influence of cash flow components on Market price per share of commercial banks in Nigeria using time series data from 2005 to 2014 as well as autoregressive distributed lag (ARDL) regression approach. The data for the study was sourced from the financial statements and annual reports of the various commercial banks selected for the study. The performance of commercial banks in Nigeria proxied by earnings per share (EPS), return on assets (ROA) and market price per share (MPPS) was measured in this study using such variables such as: Operating Cash Flow (CFO), Investment Cash Flow (CFI), Financing Cash Flow (CFF) and Debt to Equity ratio (DER) which was used as a control variable. The coefficient of determination (R2) values of 97.34%, 63.75% and 34.48% respectively are the proportion of variations in ROA, EPS and MPPS explained by the independent variables included in the model. All the unexplained variations are left stochastic.
Affiliation : 1Abia State Ministry of Finance, Umuahia, 2,3 Department of Accounting, College of Management Sciences, Michael Okpara University of Agriculture Umudike, Nigeria, 4 Department of Economics, College of Management Sciences, Michael Okpara University of Agriculture Umudike, Nigeria
Keywords : Cash Flow, Operating, Investing, Financing, Performance and Commercial Bank
Date : Friday ,29 ,December ,2017

Download Full Page



<<< Go Back