Original scientific paper
https://doi.org/10.46458/27121097.2024.30.7
RISK MANAGEMENT PRACTICES AND MARKET VALUE OF QUOTED MANUFACTURING FIRMS IN NIGERIA
Aderemi Olalere Adebayo
; Osun State University, Department of Accounting, Osogbo, Nigeria
Oluwatimileyin Esther Adenle
; Osun State University, Department of Accounting, Osogbo, Nigeria
Peter Sunday Darmola
; Osun State University, Department of Accounting, Osogbo, Nigeria
Abstract
This research investigated how risk management strategies affect the market value of quoted Nigerian manufacturing firms from 2013 to 2022. 30 out of 44 firms across consumer goods, agricultural, industrial goods, and conglomerate sectors were deliberately selected. The study employed panel regression, correlation analysis, and descriptive statistics for data analysis. The findings revealed that liquidity risk (LDQ), operational efficiency risk (OER), and leverage risk (LEV) significantly influence market share prices. Also, the result revealed that LDQ, OER, and LEV positively and significantly impact Tobin’s Q. In conclusion, the study suggests that managing liquidity, operational efficiency, and leverage risks can substantially enhance the market value of Nigerian manufacturing firms. Thus, firms are encouraged to mitigate these risks to increase market value, profitability, and overall growth.
Keywords
leverage risk; liquidity risk; operational efficiency risk; market share price; Tobin’s Q;
Hrčak ID:
327766
URI
Publication date:
30.12.2024.
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