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RELATIONSHIP BETWEEN CORPORATE LIQUIDITY AND PROFITABILITY

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dc.contributor.author ASARE, KWAKU ERIC
dc.contributor.author AMOAH, LINDA
dc.contributor.author NIMO, FRANCIS
dc.contributor.author GRAHAM, CYNTHIA
dc.contributor.author BOATENG OWUSU, KWAKU
dc.date.accessioned 2013-07-30T10:18:09Z
dc.date.accessioned 2022-01-18T17:43:47Z
dc.date.available 2013-07-30T10:18:09Z
dc.date.available 2022-01-18T17:43:47Z
dc.date.issued 2013-06
dc.identifier.uri http://localhost:8080/xmlui/handle/123456789/202
dc.description Globalization is putting a lot of pressure on economies all the world to be competitive and expand to arrest the problem of poverty.In view of this, various governments have put programs and strategies in place to be competitive to ensure steady but sustainable growth and development, which is the only way to eradicate poverty.The Ghanaian economy, the structure of which according to Institute of Statistical, Social and Economic Research (ISSER 2006) is Agriculture 37.3% (with a growth rate of 5.7%), Industry/ Manufacturing 25.3% (with a growth rate of 7.3%), and the service sector 37.5% (with a growth rate of 6.5%), is no exception. The economy is mainly controlled by the private sector. en_US
dc.description.abstract In this study the relationship between liquidity and profitability was investigated. Using time series data, the study covered a period of five years between 2004 and 2008 on brewery companies listed on the Ghana stock exchange. It was observed that from the multiple regressions analysis that total cash ratio (TCR) of 8% was maintained in the brewery industry over the period. Total liquidity ratio was also 29.7%. Liquidity refers to a firm's ability to meet its short-term obligations when they fall due. The performance in terms of profitability was evidenced by ROE, 22% and ROA, 9%. This was not impressive; however, it goes to highlights the importance liquidity management can affect profitability. This trend was observed consistently over the period 2004 to 2008. The study made some interesting revelations resulting from the Pearson’s correlation analysis. We found that, ROE and ROA are positively correlated with total cash ratio and total liquidity ratio. en_US
dc.subject Globalization en_US
dc.subject economies en_US
dc.subject Ghanaian economy en_US
dc.title RELATIONSHIP BETWEEN CORPORATE LIQUIDITY AND PROFITABILITY en_US
dc.title.alternative EVIDENCE FROM QUOTED BREWERY COMPANIES ON THE GHANA STOCK EXCHANGE (GSE) en_US
dc.type Thesis en_US


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