CASH FLOW ACCOUNTING REPORTING AND MARKET VALUATION OF SELECTED MULTINATIONAL COMPANIES IN SEVEN SUB-SAHARAN AFRICAN COUNTRIES

Abstract

The study investigates the value relevance of cash flow accounting reporting on listed Nigerian  consumer goods sector. Ex-post facto was adopted as the research design for the study, and the  population comprised of 21 listed firms in the consumer goods sector and a sample of fourteen (14)  firms was selected using purposive sampling technique. The annual accounts of the sampled firms  served as secondary sources for data extraction based on the variables of the study. The study  adopted the feasible GLS regression method of data analysis. The result revealed that free cash flow has negative insignificant effect on the market value of listed consumer goods firm in Nigeria,  however, capital expenditure to cash flow ratio and operating cash flow ratio has positive significant  effect on the market value of listed consumer goods firm in Nigeria. The study recommended that the  consumer goods firm should analyze their current FCF allocation strategy and consider if there are  alternative investment opportunities, develop a strategic CapEx plan that focuses on investments with  demonstrably positive impacts on future and implement strategies to improve operational efficiency  and streamline cash flow generation processes