Macroeconomic factor, firm characteristics and inventory holding in Nigeria: A quantile regression approach

Purpose: Prior studies show that inventory holding is closely linked to liquidity and procyclical dependent on the combination of macroeconomic firm characteristics. Thus, conditional linear factor models such as OLS should fail explain inventory-holding motive, especially in context developing countries. This study seeks empirically investigate determinants corporate based evidence from pharmaceutical companies Nigeria. Research methodology: The adopts ex post facto research design. final sample was eight & healthcare firms quoted Nigerian Stock Exchange (NSE). data were analysed using quantile regression technique. Results: results showed inflation rate had a positive effect distribution at upper quantiles (75th); and, cash conversion cycle significant different (25th, 50th 75th). Profitability non-significant distributions. Limitations: focus limits generalizability findings other sectors economy. Contributions: contributes literature countries, impact varying characteristics rates regressand, i.e., holding.