Abstract

This study examined corporate liquidity management and cost of debt capital. The specific objectives were to investigate whether cash ratio, current ratio, quick ratio and efficiency ratio have significant effect on debt capital of listed manufacturing firms in Nigeria. The secondary source of data collection was adopted in the study where the purposive sampling technique was used to select a sample size of twenty six (26) manufacturing firms for the study. Least Square regression analysis was used in this study and the findings revealed that cash ratio, current ratio, quick ratio and efficiency ratio have no significant effect on debt capital of listed manufacturing firms in Nigeria. It was concluded that cash ratio and quick ratio have significant effect on debt capital while current ratio and efficiency ratio have no significant effect on debt capital of listed manufacturing firms in Nigeria. Finally, it was recommended amongst others that managers of manufacturing firms should increase the amount held as cash in order to meet daily obligations, which could yield higher return before paying its liabilities.