FIRM CHARACTERISTICS AND VALUE OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA

Abstract

Firm value as a measure of sustainability, stability and going concern of business organizations had been a toss of debate in several past studies. Yet these studies accounted for different determinants of firm value. Hence, these variations and inclusiveness ignited the need for this study. The study adopted a correlational research design. Population of the study consisted of 13 Industrial Goods companies, among others, that are listed on the Nigeria Exchange Group (NGX). Nine (9) companies with consistent annual financial reports for the period of twelve years (2013-2024) were selected. Validity and reliability of data was premised on audited financial statements.
Data were analyzed using descriptive and inferential statistics. The findings of this study revealed that individual effect of corporate governance on market capitalization, enterprise value and price earnings ratio was significant but insignificant on price-to- book value (t =7.874, 7.880, 6.473, p<0.005; t =0.543, p>0.05) respectively. Growth opportunities had an insignificant influence on market capitalization, enterprise value, price earnings ratio was significant and price-to-book value (t =-1.640, -0.952, -0.959, 1.626797; p>0.05) respectively. Above all, this study revealed that firm characteristics had a significant effect on market capitalization. The study revealed that enterprise value was significantly affected by firm characteristics. Also, the study found that firm characteristics had a significant effect on price earnings ratio and price-to-book value.
The study concluded that firm characteristics influenced the firm value of listed non- financial companies in Nigeria. It was recommended that regulatory bodies should enforce stricter corporate governance codes to ensure transparency and accountability among listed non-financial companies.