Examining the cash flow statement relevance for measuring the business performance in Nigeria


  • Amadin Victor Idehen University of Benin
  • Karen Akhator




Cash flow, Business, Performance, First Bank, CBN


The study examined the relevance of the statement of cash flow in the measurement of Business performance. The methodology used is a review of relevant and extant literature, First Bank share prices from 2012 -2021 after which a conclusion was made. Statement of cash flow has been a subject of debate among scholars due to some limitations in the preparation of cash flow statements. It was revealed that First Bank share prices that rose from all-time low in 2015 and 2016 to a sudden upsurge in 2018 is a reflection that the share prices did not reflect the intrinsic value of the firm. The information in the financial statement was not adequate to guide the various stakeholders. Failure of First Bank to disclose Central Bank of Nigeria forbearances, amount to material misrepresentation and led to a bubble of the share prices. The quick pick-up of the share prices after the sacked of FBN management is evidence of some investors ' belief in the bubble share prices.


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How to Cite

Idehen, A. V., & Akhator, K. (2021). Examining the cash flow statement relevance for measuring the business performance in Nigeria. International Journal of Research in Business and Social Science (2147- 4478), 10(4), 249–254. https://doi.org/10.20525/ijrbs.v10i4.1204



Financial and Economic Studies