INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION

QUALITY OF TRADE RECEIVABLES, CASH HOLDINGS AND FIRM VALUE OF DEPOSIT MONEY BANKS IN NIGERIA

Alexander Olawumi Dabor (PhD), Victor Chukwudeme Odu (PhD) FCA
February 7, 2026

Abstract

This study examines the impact of the quality of trade receivables quality and cash holdings on firm value among listed Deposit Money Banks (DMBs) in Nigeria from 2013 to 2023. Using Panel Generalized Least Squares (PGLS) regression, the results show that poor receivables quality (TRCQI) and high cash holdings significantly reduce firm value. Receivables turnover also has a negative effect, suggesting that overly aggressive recovery may harm long-term value. Non-performing loan ratio and loan loss provisions show insignificant effects. The study concludes that efficient receivables management and optimal cash utilization are essential for enhancing firm value. DMBs should improve credit oversight, avoid excessive liquidity, adopt balanced recovery strategies, and enhance transparency to boost investor confidence.

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INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION

Published in INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION

ISSN: 3027-0378

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