Nigerian Journal of Management Studies

Determinants and Economic Consequence of Corporate Cash Holding in Listed Manufacturing Firms in Nigeria

Oluwamayowa Olalekan IREDELE, Okwy Peter OKPALA, Favour Oluwapelumi OMIWOLE — Sun, 27 Oct 2024 18:17:16 +0000

This study is aimed at evaluating the variables that determine corporate cash holding, and the way it impacts on the financial performance of manufacturing companies that are listed in Nigeria. The specific variables that determine corporate cash holding as examined in this study are company size, leverage, and dividend payment. The study adopted 3 corporate finance theories which are the Trade-off theory, Pecking order theory and the Agency theory. Data were extracted from the annual reports of 34 listed manufacturing firms over the period 2018 to 2022. Fixed effect multiple regression analysis was adopted to analyse the data extracted from the published financial report. Result of the study show the degree of cash flow in Nigerian listed manufacturing enterprises is significantly influenced by the size of the organization. Additionally, the investigation showed that corporate cash holdings do not determine the financial performance of Nigerian listed manufacturing companies.

Effect of Inflation on Stock Market Performance of Fast-Moving Consumer Goods Sector in Nigeria

Noruwa Ikponmwosa ABU — Tue, 31 Dec 2024 00:00:00 +0000

This study examines the impact of inflation on stock market performance within Nigeria's Fast-Moving Consumer Goods (FMCG) sector, spanning from 2007 to 2023. Employing a quantitative approach, the study uses time-series analysis, including ARDL (Autoregressive Distributed Lag) and Granger causality tests, to evaluate how inflation - proxied by broad money supply, inflation rate, interest rate, and market capitalization affects FMCG performance. The findings reveal a complex relationship between inflation and stock performance. Inflation negatively impacts FMCG stock performance in the short term, evidenced by decreased profitability and increased instability during high inflation periods. Conversely, a positive relationship emerges in the long term, suggesting that FMCG stocks can adapt and potentially benefit from inflationary environments over extended periods. Comparative analysis indicates that high inflation leads to greater challenges for FMCG stocks, including decreased profitability and pricing control issues, while low inflation fosters stable demand and improved financial performance. Broad money supply is found to significantly influence both inflation and stock market performance, with an increase in money supply correlating with higher inflation. Based on these insights, the study recommends that FMCG companies should adopt pricing strategies that would enhance cost efficiency, and pursue innovation and localization to mitigate the adverse effects of inflation. The study also explored the impact of inflation on specific sub-sectors within the FMCG industry to provide a more detailed understanding of these dynamics. This research contributes to the literature on inflation and stock market performance by highlighting sector-specific challenges and offering practical recommendations for navigating inflationary pressures in emerging markets.

Gender Perceptions on the Influence of Trade Unions’ Policies on Selected Banks in Lagos state, Nigeria

S. O. FOWOSERE, H. OKUNDALAIYE, S. JOHN-IGBIELE — Tue, 31 Dec 2024 10:19:19 +0000

This study examined the perception of male and female employees in Nigerian banks concerning trade union performance. The study aimed to understand employees’ perceptions regarding collective bargaining outcomes, trade union influence on workplace policies, and the representation of women in union leadership positions. Industrial Democracy Theory underpins the study. The study adopted a positivist and deductive approach. Data were collected using a mono-method (structured questionnaire). Based on the Central Limit Theory, these questionnaires were distributed to 200 employees of 8 commercial banks in Lagos state's Kosofe local government area. The convenience sampling method was adopted in data collection. The data collected was analysed using descriptive statistics, while independent samples t-test analysis was used to test the hypotheses. The study showed that gender significantly influenced collective bargaining success, with males scoring higher. However, gender did not significantly impact workplace representation, influence, advocacy, and policy impact. It was recommended that trade unions should promote gender diversity in negotiation teams for more equitable collective bargaining outcomes.