WSEAS Transactions on Environment and Development
Print ISSN: 1790-5079, E-ISSN: 2224-3496
Volume 17, 2021
Liquidity and the Performance of the Nigerian Manufacturing Firms: An Economic Value-added Approach
Authors: , , ,
Abstract: Considering the possibility of finding a gap and a room for improvement, so much
have been written about liquidity and performance. Notwithstanding, the emphasis has been on
profitability as a yardstick for performance and little has been done on other areas of
performance measurement. The emphasis has also been more on various economic sectors with
the exception of the manufacturing industry. This paper intends to look at the impact, if any, of
liquidity provision and availability on Nigeria’s manufacturing firm’s performance from the
perspective of Economic Value Added (EVA). Economic value-adding is beyond just
profitability or liquidity. The firm's value to the stakeholders, its sustainability and long-term
values are defined. The study would apply liquidity theories, profitability and the economic
value-added theories as it applies to a manufacturing firm in a developing economy like Nigeria.
On its methodology, the article data is obtained from the World Bank’s World Development
Indicators-WDI and then a regression analysis will be run on the data using the SPSS software
and then an analysis of the results of the regression. The last section of the article would
conclude and make recommendations from the study outcome and the empirical analysis with
respect to the theories.
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Pages: 47-55
DOI: 10.37394/232015.2021.17.5