Cash Flow Management, Human Capital Investment and Capital Gain of Quoted Commercial Banks in Nigeria

  • Lucky Anyike Lucky Department of Banking and Finance, Rivers State University, Port Harcourt, Nigeria
  • Phil-Olumba Ifunanya Sheila Department of Banking and Finance, Rivers State University, Port Harcourt, Nigeria
Keywords: Cash Flow Analysis, Human Capital Investment, Capital Gain, Net Operating Cash Flow, Cash Flow from Investing Activities.


This study examined how cash flow management and human capital investment affect capital gain of commercial banks in Nigeria. Cross sectional data were sourced from the financial statement of the commercial banks from 2009 to 2018.   Capital gain  was used as dependent variables  while investment on employee training,  investment on employee  education, investment on employee health, differed employee payment, operating cash flow, cash flow from financing activities, cash flow from investing activities and net cash flow were  used as  independent variables. Ordinary least square method of panel co-integration, unit root, granger causality test was used. The study found among other things that operating cash flow, cash flow financing activities and cash flow from investing activities showed negative relationship with capital gain while net operating cash flow showed positive relationship with capital gain. Investment on employee training and health has positive relationship with capital gain while differed payment and education has negative relationship with capital gain.  From the findings, the study concludes that cash flow management and human capital investments have significant effect capital gain of commercial banks in Nigeria.  We that management of commercial banks should investment more on employee education as this can make the employees acquire dynamic knowledge in bank management such as credit appraisal that reduces the incidence of nonperforming loans and increase profitability. Furthermore, employees differed payment procedures should be well planned and seamlessly integrated into management broad policies of investment and financing decisions.


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How to Cite
Lucky, L. A., & Sheila, P.-O. I. (2020). Cash Flow Management, Human Capital Investment and Capital Gain of Quoted Commercial Banks in Nigeria. American International Journal of Economics and Finance Research, 2(1), 34-53.
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