CORPORATE CASH HOLDING AND ASSET MANAGEMENT STRATEGIES IN AGRICULTURAL AND CONSUMER GOODS SECTORS IN NIGERIA

The study examined corporate cash holding and asset management strategies in agricultural and consumer goods sectors in Nigeria. The study was necessitated by the inability of some agricultural and consumer goods firms to take up expansionary opportunities without debt. Firm size (FS) and asset structure (AS) were used as proxies for firm’s characteristics being the independent variable, while cash holding was used as the dependent variable and was proxies by cash and cash equivalents (CCE). All the five agricultural companies and fourteen consumer goods companies listed on the Nigerian Exchange Group (NGX) as at the last working day of December, 2021 were selected using stratified sampling technique. Ex-Post facto research design was adopted. The study covered the period 2011-2021. Two hypotheses were formulated and tested using random panel regression output aided by E-views 9.0. Finding reveal that Firm Size (TA) had positive and significant effect on CCE (r = 0.618094; P = 0.0011 < 0.05; t = 3.466414 > 2.0). This implies that increased investment in assets may result to more values for the firms. Asset structure, AS has positive and significant effect on cash and cash equivalents of firms in agricultural and consumer goods sectors in Nigeria, (r = 0.639082; P = 0.0021 < = 0.05; t = 3.456612 > 2.0). The study concludes that TA and AS have positive and significant effect on CCE. Recommendations include taking up aggressive marketing and promotion as well as increased sales; thorough evaluation of capital expenditure, while strategic mergers and acquisition, and strategic investment in new and improved technology should be considered. Management should seek cheaper sources of funding to reduce the burden of servicing debt.