Liquidity management and corporate governance data set

The study explores the effect of liquidity management and corporate governance on the financial performance of listed manufacturing firms in Africa. The study applied the generalized method of moments to analyze data from a sample of 83 listed manufacturing firms in Africa for the years 2017 to 2024. The findings reveal that liquidity and corporate governance mechanisms predominantly drives firm performance, although their effects vary across the study’s performance measures. The cash ratio and directors’ independence exhibit strong and statistically significant positive effects on Tobin’s Q, indicating that investors attach considerable importance to liquidity strength and board independence. Conversely, return on capital employed (ROCE) is more responsive to board gender diversity, which enhances operational efficiency despite showing a negative association with Tobin’s Q, suggesting a divergence between market perceptions and operational realities. Operating cash flows and reporting frequency show no significant influence in either model. Audit and risk committee meetings signals a weak association with ROCE and remain neutral for Tobin’s Q. Among control variables, firm size and leverage significantly affect Tobin’s Q, although leverage is weakly significant, whereas firm age remains insignificant. For ROCE all of the control variables remain insignificant. These results inform the need to improve liquidity and governance frameworks to boost firms’ performance within Africa’s manufacturing sector.