Impact Of Money Market On The Liquidity Of Some Selected Quoted Banks In Nigeria
Finance is a major key element in fostering growth and development of a company and financial managers look mainly to the money and capital market for various term funds. The Nigerian money market has lagged behind in performing its intermediation role in providing such needed funds to the companies thus limiting their operations. Against this background, this paper examines the impact of the Nigerian money market instruments on the liquidity of ten selected quoted banks from 2005 to 2014. Secondary data were used and the multiple regression econometric technique was used to analyze the data. The study found that firms’ working capital and profitability have a significant impact on the money market instrument. Since the money market is very vital for financial managers to raise short-term funds, among others the study recommends that to improve the money market there should be adequate monitoring and surveillance of the activities of the market participants and also the introduction of new and flexible financial instruments.[email protected].