CORPORATE RESILIENCE IN TIMES OF ECONOMIC TURMOIL: THE EFFECTS OF ASSET DEVALUATION AND DEBT DEFLATION ON SUSTAINABILITY
Keywords:
Financial crises, corporate sustainability, asset devaluation, debt deflation, manufacturing firms, liquidity, reinvestment, interest rates, sustainable development, Nigeria.Abstract
This study examines the impact of financial crises on the sustainability of selected manufacturing
firms in Nigeria. The study evaluates the implications of asset devaluation and debt deflation on the liquidity
of these companies and their ability to invest and retain earnings for reinvestment. The research design
adopted in this study was a descriptive survey, which facilitated data collection from 83 operations
department staff of eight food and beverage firms in Anambra State, Nigeria. The study shows that financial
crises pose a significant threat to corporate sustainability, which hinders the achievement of the United
Nations' sustainable development goals. The study recommends that organizations take remedial actions,
such as rationalizing human resources' costs and postponing investments, to forestall the effect of financial
crises. The Federal Government, through the Central Bank of Nigeria (CBN), is also recommended to
reduce and centrally control interest rates to bolster liquidity for corporate organizations, especially those in
the manufacturing business affected by these crises. The study concludes by calling for binding global
minimum standards to guide economic policies towards achieving sustainable development.
