Firm size as a determinant of cash level among listed healthcare firms in Nigeria
DOI:
https://doi.org/10.35877/454RI.qems4041Keywords:
Firm size, Cash level, Healthcare FirmsAbstract
This study examined the effect of firm size on cash levels among listed healthcare firms in Nigeria. This study adopts an ex-post facto research design. The population and sample size were made up of 7 listed healthcare firms and 5 listed healthcare firms, respectively. Secondary data for the study were sourced from firms’ annual reports from 2014 to 2023. Descriptive analysis was carried out, while ordinary least square regression was used to test the hypotheses. The findings revealed that firm size has a significant positive effect on cash levels of listed healthcare firms in Nigeria (b = 0.052022; p-value = 0.0260). In conclusion, as firms grow in size, their ability to maintain higher cash balances increases. The study recommends that small healthcare firms should prioritize strategic growth initiatives such as mergers, acquisitions, or market expansion to increase their size and enhance their ability to accumulate and maintain higher cash reserves. This study contributes to knowledge by providing empirical evidence on the relationship between firm size and cash levels in the Nigerian healthcare sector, an area with limited prior research.
References
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Wijaya, A. L. (2021). The Determinants of Corporate Cash Holdings: Case of Agriculture Companies in Indonesia. Journal of Academic Finance, 12(1), 100-115.
Yasin, M. Z., Esquivias, M. A., & Suyanto, S. (2021). Does firm size matter? Evidence from Indonesian manufacturing firms. Economics Bulletin, 41(4), 2401-2417.
Aggreh, M., Abiahu, M. C., & Nworie, G. O. (2023). Cost reduction and financial performance of listed consumer goods firms in Nigeria. Journal of Banking, 11(1), 1-38.
Akpan, D. C. (2024). Cash flow practices and dividend policy of listed health care firms in Nigeria. Direct Research Journal of Management and Strategic Studies, 5(3), 1-8.
Ali, I., Soomro, R. B., Brohi, M. A., & Soomro, M. N. (2021). Determinants of Cash Holding: Evidence From The Non-Bank Financial Sector Of Pakistan. International Journal of Advanced Research in Engineering and Technology (IJARET), 12(4), 252-269.
Amahalu, N. N., & Okudo, C. C. (2023). Firm characteristics and cash holdings of quoted conglomerates in Nigeria. Scholarly Journal of Management Sciences, 2(3), 111-126.
Amahalu, N. N., Okudo, C. C., & Eyide, M. U. (2023). Determinants of Cash Holdings: Evidence from Listed Pharmaceutical Companies in Nigeria. Research and Analysis Journal 6(6), 05-11.
Azzahra, S., & Sukmaningrum, P. S. (2022). Determinant Of Cash Holding From Listed Company In Jakarta Islamic Index. AFEBI Islamic Finance and Economic Review, 7(01), 13-22.
Dang, C., Li, Z. F., & Yang, C. (2018). Measuring firm size in empirical corporate finance. Journal of banking & finance, 86, 159-176.
Endri, E., Sulastri, S., Syafarudin, A., Mulyana, B., Imaningsih, E. S., & Setiawati, S. (2020). Determinants cash holding of coal mining companies listed on the Indonesian Stock Exchange. Academy of Strategic Management Journal, 19(6), 1-9.
Frances, C. C. & Nworie, G. O. (2025). Firm size: A strategic booster of shareholder wealth maximisation among listed agricultural firms in Nigeria. International Journal of Academic Accounting, Finance & Management Research (IJAAFMR), 9(4), 47–57. http://ijeais.org/wp-content/uploads/2025/4/IJAAFMR250405.pdf
Gao, J., Grinstein, Y., & Wang, W. (2017). Cash holdings, precautionary motives, and systematic uncertainty. Precautionary Motives, and Systematic Uncertainty (June 21, 2017).
Ikwuo, A. K., Nwite, I. M., Nworie, G. O., & Nworie, F. N. (2025). Shareholder value diminution through long-term debts: Evidence from the Nigerian oil industry. Annals of Management and Organization Research (AMOR), 6(3), 271-285.
Kenton, W. (2024, August 19). Economies of scale: What are they and how are they used? Investopedia. https://www.investopedia.com/terms/e/economiesofscale.asp
Kwan, J. H., & Lau, W. Y. (2020). Do firm characteristics and industry matter in determining corporate cash holdings? Evidence from hospitality firms. The Journal of Asian Finance, Economics and Business, 7(2), 9-20.
Muhammad, K. A. (2022). Financial Determinants of Corporate Cash Holdings: Evidence From Properties And Real Estate Companies Listed In Indonesia Stock Exchange 2017-2020 (Doctoral dissertation, Universitas Andalas).
Naumoski, A., & Ruseva, S. (2022). Analysis of determinants of corporate cash holding of listed manufacturing companies on the Macedonian stock exchange. Southeast European Review of Business and Economics.
Ndu, B. C., Ifurueze, M. S., & Amahalu, N. N. (2024). Firm attributes and cash holdings of listed pharmaceutical firms in Nigeria. Journal of Global Accounting, 10(3), 273-304.
Nnubia, I. C., Ofoegbu, G. N., & Nnubia, J. C. (2020). Firm’s characteristics and cash holdings: Evidence from Nigeria, South Africa and Kenya. International Journal of Research and Innovation in Applied Science (IJRIAS), 5(9), 101-118.
Noke, G. C., Oliver, I., & Udeh, S. N. (2024). Effect Of Firm Size On Cash Holdings Of Food And Beverages Firms In Nigeria. International Research Journal of Accounting, Finance and Banking (IRJAFB), 15(5), 1-10.
Nwokoye, A. G. (2022). What Determines Cash Holding of Listed Deposit Money Banks? Evidence from Nigeria. International Journal of Economics and Finance, 14(6).
Nworie, G. O. & Mba, C. J. (2022). Modelling financial performance of food and beverages companies listed on Nigerian exchange group: the firm characteristics effect. Journal of Global Accounting, 8(3), 37 - 52. https://journals.unizik.edu.ng/index.php/joga/article/view/1418/1142
Nworie, G. O., & Okafor, T. G. (2023). Nigeria Public Manufacturing Firms adoption of Computerised Accounting System: The Firm Size and Firm Capital Turnover Effect. Journal of Global Accounting, 9(1), 324-345.
Nworie, G. O., Okafor, T. G., & John-Akamelu, C. R. (2022). Firm-level traits and the adoption of computerised accounting information system among listed manufacturing firms in Nigeria. Journal of Global Accounting, 8(3), 128-148.
Ogueji, I. A., Ogunsola, O. O., Abdalla, N. M., & Helmy, M. (2024). Mistrust of the Nigerian health system and its practical implications: qualitative insights from professionals and non-professionals in the Nigerian health system. Journal of Public Health, 32(2), 303-314.
Okeke, N. M., & Nworie, G. O. (2025). A Free Cash Flow Theory perspective on the nexus between cash management and return on equity: Evidence from Nigerian food and beverage firms. IIARD International Journal of Economics and Business Management, 11(3), 14-27. https://doi.org/10.56201/ijebm.vol.11.no3.2025.pg14.27
Sousa, P. H. R., Reyes Junior, E., Costa, C. C. B., & Reis, A. L. N. (2021). A model of innovation process in light of the Theory of The Growth of the Firm, by Edith Penrose, and of Resource-Based View. Iberoamerican Journal of Strategic Management (IJSM), 20, 1-35.
Tahir, M. S., Alifiah, M. N., Arshad, M. U., & Saleem, F. (2016). Financial theories with a focus on corporate cash holding behavior: A comprehensive review. International Journal of Economics and Financial Issues, 6(3), 215-219.
Ukoha, A. C., & Udeh, F. N. (2024). Firm’s characteristics and cash holdings: A study of listed non-financial firms in Nigeria. International Journal of Economics and Financial Management (IJEFM), 9(8), 48.
Vukovi?, B., Miji?, K., Jakši?, D., & Sakovi?, D. (2022). Determinants of cash holdings: evidence from Balkan countries. http://hdl.handle.net/11025/47477
Wijaya, A. L. (2021). The Determinants of Corporate Cash Holdings: Case of Agriculture Companies in Indonesia. Journal of Academic Finance, 12(1), 100-115.
Yasin, M. Z., Esquivias, M. A., & Suyanto, S. (2021). Does firm size matter? Evidence from Indonesian manufacturing firms. Economics Bulletin, 41(4), 2401-2417.
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Published
2025-10-31
How to Cite
Ikwuo, A. K., Nwite, I. M., & Uduma, E. (2025). Firm size as a determinant of cash level among listed healthcare firms in Nigeria. Quantitative Economics and Management Studies, 6(5), 782–791. https://doi.org/10.35877/454RI.qems4041
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