Asset Tangibility Investment and Operating Business Liquidity of Listed Companies in Nigeria
Corporate strategic management requires sound financial acumen to drive its liquidity sustainability. Sturdy liquidity enables firm’s ability to maintain cash position that seamlessly meets daily obligations while utilizing excess cash to acquire tangible assets. This study investigated the effect of asset tangibility on liquidity of selected listed companies in Nigeria. The study adopted ex-post facto research design, with secondary method of data collection. The sample was 111 companies selected from 161 firms listed in Nigeria as at 31st December, 2020 for the period of 10-year (2011–2020). The findings from panel regression analysis revealed that asset tangibility had significant negative effect on operating business liquidity at 5% level of significance. The study concludes that corporate asset tangibility has significant negative effect on operating business liquidity of selected listed companies in Nigeria. Thus, the study recommends that investment in tangible assets should be properly planned and optimally executed so as to achieve seamless operating business liquidity; bearing in mind that an increase in asset tangibility investment would produce statistically significant negative effect on liquidity. Keywords: Asset Tangibility, Financial strategy, Insolvency, Liquidity, Sustainability JEL Classification code: M41