Effect of Liquidity and Life Cycle on Biological Assets of Quoted Firms in Nigeria Agricultural Sector

Abstract

This study examined the effect of liquidity and life cycle on biological assets of quoted firms in Nigeria's agricultural sector. The specific objectives were to examine the effect of liquidity, firm size, and firm age on the biological assets of quoted Agricultural firms in Nigeria. An ex-post facto research design was adopted in the study. The study made use of secondary panel data drawn from annual reports and accounts of the sampled agricultural firms for a period of Ten (10) years, 2011-2020. Panel least squares multiple regression was used to test the hypotheses. The result of the analysis showed that leverage has a statistically significant effect on the biological assets of quoted agricultural firms in Nigeria. The implication is that none of the three variables can predict the increase or decrease in biological assets of agricultural firms in Nigeria. The authors recommend that agricultural firms should look for other sources of finance to fund their business activities. Firms should maintain a good liquid condition. Continuous firm growth should be made because of the positive link it has with biological assets. Firms are encouraged to perform changes continuously in both assets and other activities that may be affected by the age of the firm.