An Appraisal of the Determinants of Corporate Cash Holdings: Evidence from the Nigerian Manufacturing Firms


  • Israel Seriki Akinadewo
  • Omobolade Stephen Ogundele
  • Jeremiah Oreoluwa Akinadewo


Exploring a sample of 40 manufacturing firms listed on the Nigerian Exchange Group, this study investigated factors determining corporate cash holdings from 2012 to 2021. The sampled companies' annual reports served as the source for secondary data. To identify the key variables influencing cash holdings, panel regression analysis was conducted. Findings revealed that leverage, liquidity, return on asset and firm size had significant positive effect on cash holdings while growth opportunities revealed negative significant effects on cash holdings. The findings indicated that both pecking order and trade-off theory played a vital role in explaining the factors influencing the corporate cash holding.