Abstract

This study examined the determinants of cash holding in listed manufacturing firms in Nigeria. The specific objectives were to investigate whether asset tangibility, financial profitability, financial leverage and asset size have significant effect on cash holding of listed manufacturing firms in Nigeria. The secondary source of data collection was adopted in the study where the purposive sampling technique was used to select a sample size of twelve (12) of listed manufacturing firms for the study. Least Square regression analysis was used in this study and the findings revealed that asset tangibility, financial profitability, financial leverage and asset size have no significant effect on cash holding of listed manufacturing firms in Nigeria. It was concluded that asset tangibility, financial profitability and financial leverage all has significant effect on cash holding while asset size has no significant effect on cash holding of listed manufacturing firms in Nigeria. Finally, it recommended that investment in asset tangibility acquisition by corporate managers should be properly planned, monitored and optimally executed strategically in order to enhance operating business liquidity position and firms should avoid holding excessive cash reserves as this might attract scrutiny from the capital markets and in the long run, deplete profitability