Universal Journal of Accounting and Finance 9(4): 701-711, 2021 http://www.hrpub.org DOI: 10.13189/ujaf.2021.090416 Cash Flow Management and Industrial Firms Performance in Nigeria Idamoyibo Hwerien Rosemary 1 , Abner Ishaku Prince 2 , Akpan Ededem Jack 3 , Orugun Ibidunni Fausat 4 , Emmanuel Nwabueze Enoch 3 , Udo Emmanuel Samuel 3,* 1 Department of Accounting, Ignatius Ajuru University of Education, Port Harcourt, Nigeria 2 Department of Management, University of Nigeria Enugu Campus, Nigeria 3 Department of Banking and Finance, University of Nigeria Enugu Campus, Nigeria 4 Department of Banking and Finance, Kogi State University, Nigeria Received March 9, 2021; Revised June 22, 2021; Accepted July 19, 2021 Cite This Paper in the following Citation Styles (a): [1] Idamoyibo Hwerien Rosemary, Abner Ishaku Prince, Akpan Ededem Jack, Orugun Ibidunni Fausat, Emmanuel Nwabueze Enoch, Udo Emmanuel Samuel , "Cash Flow Management and Industrial Firms Performance in Nigeria," Universal Journal of Accounting and Finance, Vol. 9, No. 4, pp. 701 - 711, 2021. DOI: 10.13189/ujaf.2021.090416. (b): Idamoyibo Hwerien Rosemary, Abner Ishaku Prince, Akpan Ededem Jack, Orugun Ibidunni Fausat, Emmanuel Nwabueze Enoch, Udo Emmanuel Samuel (2021). Cash Flow Management and Industrial Firms Performance in Nigeria. Universal Journal of Accounting and Finance, 9(4), 701 - 711. DOI: 10.13189/ujaf.2021.090416. Copyright©2021 by authors, all rights reserved. Authors agree that this article remains permanently open access under the terms of the Creative Commons Attribution License 4.0 International License Abstract The focal point of this research was to establish the liquidity-viability link in quoted non-financial firms in Nigeria. Liquidity improves the profitability of firms but not its solvency. The solvency and performance of a firm exclusively anchor on the firm’s capacity to realize the “twin conflicting” targets of liquidity sufficiency and stable growth through a diversified and stable asset-liability mix. The firm’s inability to strike an equilibrium balance among meeting financial obligations, sufficient liquidity and profitability has led to insolvency of most firms in Nigeria. Most empirical studies in Nigeria ignore effect of cash flow management on the non-financial sector to focus on the financial sector. Use the regression model predominantly and also ignore the widely accepted econometric process of a pre and post diagnostic test. This study focuses on 13 quoted non-financial sectors in Nigeria firms from 1999-2020. The preliminary test was conducted to determine the best fit model. Liquidity proxy by the current ratio significantly influences ROE and non-significantly on ROE when proxy by the cash flow ratio. Findings also divulged a bidirectional nexus between current ratio, cash flow ratio, and ROE and a non-causal nexus with other variables. Policy recommendations are further discussed. Keywords Cash Liquidity, Management Financial Performance, Non-financial Firms, Nigeria JEL Codes: A12, M21, C0, G32, G02. 1. Introduction Industrial sector proficiency is vital to the stability of any nation's economy. Instability caused by both industrial and non-industrial factors of Covid-19 pandemics among others have far-reaching implications on the overall economy. The growth of the industrial sector dependent absolutely on resourceful liquidity management. The influence of liquidity on firm’s financial performance cannot be underrated. Liquidity and cash are used interchangeably in this analysis. Liquidity is a critical component of the fulcrum that determines the firm financial performance [1]. Cash flow sufficiency guarantees firms’ immediate fulfillment of its financial obligations without evasion [2]. It represents the firm’s vascular system, a unit decrease jeopardises the firm survival. Liquidity measures a firms’ financial strength to fulfill its immediate financial obligation upon its maturity, through short-term assets conversion into cash at a minimal loss [3, 4]. Firms with equilibrium balance between cash flow and liquidity are considered by investors, customers, and creditors viable for investment and planning. The value of an asset is measured by its liquidity value, when converted at little or no loss of value [2, 4, 5]. Liquid asset improves the profitability of firms but not its solvency. Firms