Liquidity Management and Performance of Tertiary Institutions in Kogi State

Abstract

Liquidity and its management determine to a great extent the performance of a firm. This is because either inadequate or excess liquidity may be injurious to the smooth operations of the organization. This study titled: liquidity management and performance of tertiary institutions in Kogi State is carried out to examine the impact of inventory management, cash management and credit management on performance of Tertiary Institutions in Kogi State. The study adopts a descriptive research design and reached a population of 1004 from selected tertiary institutions. However, out of the total pupation only 278 sampled using the Godden sample size statistical formula while 226 questionnaires were duly completed and returned which gives a retrieval rate of 81%. The research instrument was validated by two experts and pilot study was conducted to ascertain internal consistency using Cronbach Alpha reliability statistics. More so, data was analyzed using a five-point likert scale and hypotheses tested using multiple regression. The findings show that there is a significant relationship between liquidity management and performance of Tertiary Institutions in Kogi state.  The study recommends that the management of tertiary institutions should avoid accumulating too much short-term financing as it discourages performance. More so, the management of tertiary instructions should adopt lean/just-in time operations to facilitate effective liquidity management towards service delivery.