2023, Vol. 4, Issue 1, Part B
Firms’ characteristics and market value of listed manufacturing companies in Nigeria
Author(s): Comfort Bassey NDUONOFIT, ESSIEN Akpanuko, Etim Osim Etim and Jeremiah Patrick EDET
Abstract: This study was conducted to determine the influence of firms’ specific characteristics on the market value of listed manufacturing companies in Nigeria. This was anchored on the fact that firms’ specific characteristics usually reveal the efforts of managers in the performance of entities. The ex-post facto research design was adopted because the study was quantitative and required secondary data. The population of this study was fifty-six (56) manufacturing companies from four (4) sub-sectors-consumer goods, industrial goods, oil and gas and healthcare sub-sectors listed on the floor of Nigerian stock market as at 31st December, 2020. Forty-two (42) listed manufacturing entities were sampled for the study based on availability of data. Panel data were collected from the financial statements of the manufacturing companies sampled for the study. The variables of this study were Market Value (MV) and firms’ specific characteristics. The dependent variable was firm’s value measured by Tobin’s Q and the independent variables, the firms’ specific characteristics were Liquidity (LQ) and Operating Efficiency (OE). Inflation rate (IFR) was used as a control variable. Data were analyzed using descriptive statistics and multiple linear regression statistical tools. The fixed effect regression approach was employed in the study. From the analyses, it was revealed that LQ and OE had positive and significant influence on MV of listed manufacturing companies in Nigeria. In line with the findings, it was concluded that firms’ specific factors had significant influence on the value of listed manufacturing companies in Nigeria. It was recommended that total assets of listed manufacturing companies in Nigeria should be acquired in accordance with the revenue generated over the years to raise the operative efficiency of the managers.
Pages: 140-151 | Views: 27 | Downloads: 17
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How to cite this article:
Comfort Bassey NDUONOFIT, ESSIEN Akpanuko, Etim Osim Etim, Jeremiah Patrick EDET. Firms’ characteristics and market value of listed manufacturing companies in Nigeria. Asian J Manage Commerce 2023;4(1):140-151.