Liquid Stock and Financial Performance of Non-Financial Quoted Companies in Nigeria

Rafiu Oyesola Salawu (), Segun Wale Olayinka (), Momodou Mustapha Fanneh () and Mary Kehinde Salawu ()
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Rafiu Oyesola Salawu: Obafemi Awolowo University, Nigeria
Segun Wale Olayinka: Obafemi Awolowo University, Nigeria
Momodou Mustapha Fanneh: University of the Gambia, The Gambia
Mary Kehinde Salawu: Obafemi Awolowo University, Nigeria

Eurasian Journal of Economics and Finance, 2022, vol. 10, issue 4, 152-163

Abstract: There have been several recent concerns about the deteriorating state of Nigerian companies’ performance. Many investors in Nigeria over the years have accused the quoted companies of not doing enough to improve their performances. Researchers are concerned about the factor that affects performance as a result of this. Therefore, this paper examines the influence of stock liquidity on the financial performance of companies in Nigeria. Data used are sourced from the financial statements of selected companies and the fact book of the Nigeria Stock Exchange for the period between 2012 and 2019. Data are analyzed using both descriptive and inferential statistics. The empirical findings of this study confirm that liquid stock, proxied by the turnover ratio (TOR), greatly impacts the performance of companies in Nigeria. Sequel to this, this paper concludes that the degree of operational success of Nigeria’s corporate entities is commensurate with the liquidity status of their stocks.

Keywords: : Financial Performance; Liquid Stocks; Quoted Companies; Nigeria (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ejn:ejefjr:v:10:y:2022:i:4:p:152-163

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