CASH FLOW ACTIVITIES AND FIRM VALUE OF NIGERIA'S LISTED CONSTRUCTION AND REAL ESTATE FIRMS

This study examined the effect of cash flow activities on the value of listed construction and real estate firms in Nigeria. Specifically, the study investigated the effect of operating cash flow, investing cash flow, and financing cash flow on firm value proxied by Tobin’s Q. The study adopted an ex-post facto research design and utilized secondary data obtained from the audited annual reports of the 12 construction and real estate firms listed on the Nigerian Exchange Group (NGX) as of June 2026. A census approach was employed, covering all the firms over a six-year period from 2020 to 2025, resulting in 72 firm-year observations. Descriptive statistics and correlation analysis were used for preliminary analysis, and the appropriate panel estimation technique was determined using the Hausman specification test. The random-effects model was selected and estimated using Panel EGLS. The findings revealed that operating cash flow has a positive and statistically significant effect on Tobin’s Q (β = 0.733764; p < 0.05). Investing cash flow had a significant negative effect on firm value (β = -0.392756; p < 0.05), whereas financing cash flow had a positive but insignificant effect on Tobin’s Q (β = 0.098529; p > 0.05). The study concluded that operating cash flow is a major driver of firm value in the construction and real estate sector, whereas investment and financing decisions require careful management to maximize shareholder wealth. Consequently, the study recommends improved operational cash management, rigorous evaluation of investment projects, and adoption of optimal financing strategies to enhance firm value.[1] Department of Accounting, Michael Okpara University of Agriculture Umudike, Abia State, Nigeria.