Effect of Cash Flow on Financial Performance of Selected Multipurpose Cooperative Societies in Abuja, FCT-Nigeria

Abstract

This study investigated the effect of cash flow on the financial performance of Multipurpose Cooperative Societies (MPCS) in Abuja, the Federal Capital Territory; specifically, the study examined the effect of cash flow on performance as it relates to assets (ROA) of MPCS and to examine the extent to which cash flow affect performance in relation to return on equity (ROE) of MPCS. The Ex–post facto research design was adopted. This study made use of secondary data covering a period of 5 years i.e. 2017 –2021, which were obtained from the financial statements of the selected MPCS. Panel regression spanning through 5 years was estimated using diverse techniques including; descriptive statistics, correlation analysis, multiple regression, standard deviation and random panel regression model. Data analyses were done using E-view 9.0 Findings of the study showed that cash flow has a positive and significant effect on ROA of selected MPCS. Cash flow has a positive and
significant effect on ROE of selected MPCS, and so contributes significantly to the performance in terms of ROE of selected MPCS.