IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 11 NO. 4 2025
DOI: 10.56201/ijebm.vol.11.no4.2025.pg304.321

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Maximising the Market Value of Listed Agricultural Firms in Nigeria: The Additive Role of Firm Debt Level

Chiamaka L. Anaike, Chigbo Chinyere Frances & Gilbert Ogechukwu Nworie

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Abstract

The study examined the effect of firm debt level on the market value of listed agricultural firms in Nigeria. The specific objective was to determine the effect of current liabilities and noncurrent liabilities on the market value of listed agricultural firms in Nigeria. Ex-post facto research design was deployed in the study. The population and sample size were made up of all the five listed agricultural firms in Nigeria. Secondary data were sourced from the firms’ annual reports from 2014-2023. In addition to the descriptive analysis carried out, the study used robust least square regression to test the hypotheses. It was found that: current liabilities have a positive and significant effect on market value of listed agricultural firms in Nigeria (? = 1.118704; p = 0.0000); non-current liabilities have a positive and significant effect on market value of listed agricultural firms in Nigeria (? = 1.365092; p = 0.0000). In conclusion, given the capital-intensive nature of agriculture, especially in areas like irrigation systems, mechanization, and processing facilities, the ability of firms to leverage debt may be seen as an indication of financial confidence, operational capability, and growth orientation. The study recommends that managers of agricultural firms should strategically manage short-term debt to finance working capital needs in ways that enhance operational responsiveness and productivity, thereby sustaining favorable market valuation.

keywords:

Firm Debt Level, Market Value, Current Liabilities, Non-Current Liabilities

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