LIQUIDITY

This study examined the determinants of corporate liquidity management among listed Nigerian Deposit Money Banks (DMBs) from 2013 to 2023. Using an ex-post facto research design, data were collected from audited financial statements, directors’ reports, and corporate governance disclosures of thirteen purposively selected stable banks. Panel regression analysis with the Generalized Least Squares (GLS) model was employed, and robustness tests-including Breusch-Godfrey LM, VIF, and ARCH tests-ensured reliability and validity of the findings. The results indicate that firm size and leverage positively and significantly influence liquidity management, while management quality, capital adequacy, and investment opportunities negatively and significantly affect liquidity. Asset quality and cash flow volatility were found to be insignificant, whereas financial distress positively enhances liquidity management. These outcomes align with the Liquidity Preference, Pecking Order, and Trade-off Theories, highlighting that strategic, structural, and financial factors, rather than operational variability, drive liquidity management in Nigerian banks. The study contributes to knowledge by providing empirical evidence on liquidity determinants, validating theoretical frameworks, and offering practical guidance for bank managers and regulators. It recommends optimizing managerial and investment decisions, leveraging financial structure, maintaining adequate capital buffers, and ensuring financial stability to sustain liquidity. These findings inform policy and strategic interventions aimed at strengthening banking sector resilience in Nigeria.