CORPORATE FAILURE PREDICTION USING CASH FLOW STATEMENTS: EMPIRICAL EVIDENCE FROM NIGERIA

This study investigated the relevance of cash flow management through Operating Cash Flow (OCF), Investing Cash Flow (ICF), and Financing Cash Flow (FCF) in predicting corporate performance and failure among selected listed and delisted companies in Nigeria, using Return on Assets (ROA) as the performance proxy. Ex Post Facto research design was employed. Data were extracted from annual account of twenty selected companies I Nigeria from 2020 to 2024. Regression analysis was used to test the hypotheses via E0view 12. The study found that though the listed companies benefit significantly from robust cash flow management. The Operating Cash Flow, Investing Cash Flow, and Financing Cash Flow were found statistically insignificant positive effects on ROA. The significance also supports the view that sound financing strategies such as controlled debt use or equity funding positively influence firm performance. Based on the findings of this study, the study recommended among others that corporate managers should prioritize effective operating cash flow management by implementing strong working capital controls, reducing receivables delays, and minimizing unnecessary operational expenses. Firms should focus on generating consistent positive OCF, as it directly supports profitability and long-term survival