Equity Financing and Market Value of Quoted Manufacturing Companies in Nigeria

Enobong Patrick UMOH; PhD; ACA; ACTI; Raphael Sunday ETIM; PhD; FCA; FCNA; FCTI; Emmanuel Emeakponuzo DAFERIGHE; PhD; FCA; FIIA; FIASR; Jeremiah Patrick EDET; PhD; ACA

doi:10.56201/ijebm.vol.11.no9.2025.pg426.462

Equity Financing and Market Value of Quoted Manufacturing Companies in Nigeria

Enobong Patrick UMOH, PhD, ACA, ACTI, Raphael Sunday ETIM, PhD, FCA, FCNA, FCTI, Emmanuel Emeakponuzo DAFERIGHE, PhD, FCA, FIIA, FIASR, Jeremiah Patrick EDET, PhD, ACA

Abstract

The study was conducted to examine the influence of equity financing on market value of quoted manufacturing companies in Nigeria. Debt and equity are the two sources of funding operations of quoted companies but it appears that equity is not always considered even though its components are the cheapest source of funding. This necessitated the conduct of this study to ascertain the influence of the variables of equity financing on market value of quoted manufacturing companies in Nigeria. Ex-post facto design was employed in the study because it required secondary data. Equity financing (independent variable) was represented by Share Capital Ratio (SCR). The dependent variable was Market Value (MV) while Asset Turnover Ratio (ATR) was a control variable chosen for the study. The population of the study was Thirty- one (31) manufacturing companies whose shares were traded on Nigerian Exchange (NGX) Group as at 31st December 2024. Twenty-four (24) companies were selected as sample size for the study on the basis of availability of published financial statements. Data required were collected from the sampled companies for the period of 2013 to 2024. The nature of data was panel data. Descriptive statistics and pooled panel linear regression statistical tools were used to analyze the data collected for the study. The result of the analysis revealed that SCR (?1=5.39905, p-value=0.0006, R2 Adjusted=0.847340 and Prob(F-Stat)= 0.000377) had a positive and significant influence on MV of quoted manufacturing companies in Nigeria. Based on the findings, the researcher concluded that equity financing had significant influence on market value of quoted manufacturing companies in Nigeria. It was recommended that share capital of quoted manufacturing companies in Nigeria should be improved through issuing of additional shares to the general public or right issue to the existing shareholders.

Keywords

1Equity Financing2Market Value and 3Quoted Manufacturing Companies

References

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Plc 2023 16.600 1.228 105.128 Cadbury Nig. Plc 2024 22.000 1.574 178.297 Flour Mills Nig. Plc 2013 74.010 0.533 100.777 Flour Mills Nig. Plc 2014 35.230 0.542 111.609 Flour Mills Nig. Plc 2015 18.865 0.567 99.243 Flour Mills Nig. Plc 2016 16.810 0.562 106.250 Flour Mills Nig. Plc 2017 30.675 0.382 109.098 Flour Mills Nig. Plc 2018 21.275 0.636 120.704 Flour Mills Nig. Plc 2019 19.325 0.653 117.878 Flour Mills Nig. Plc 2020 26.500 0.652 125.652 Flour Mills Nig. Plc 2021 28.750 0.539 140.902 Flour Mills Nig. Plc 2022 27.850 0.420 170.792 Flour Mills Nig. Plc 2023 32.150 0.285 128.324 Flour Mills Nig. Plc 2024 78.450 0.196 129.091 Guiness Nig. Plc 2013 256.005 0.622 101.159 Guiness Nig. Plc 2014 177.460 0.569 82.524 Guiness Nig. Plc 2015 163.495 0.616 96.932 Guiness Nig. Plc 2016 97.815 0.550 74.437 Guiness Nig. Plc 2017 72.245 0.516 86.224 Guiness Nig. Plc 2018 97.525 0.715 93.293 Guiness Nig. Plc 2019 46.700 0.681 81.781 Guiness Nig. Plc 2020 16.750 0.760 72.410 Guiness Nig. Plc 2021 29.025 0.646 94.693 Guiness Nig. Plc 2022 98.550 0.508 95.902 Guiness Nig. Plc 2023 75.000 0.453 94.909 Guiness Nig. Plc 2024 59.875 0.484 132.441 Honeywell F. M. Plc 2013 3.020 7.152 82.452 Honeywell F. M. Plc 2014 3.840 6.212 86.298 Honeywell F. M. Plc 2015 2.850 5.836 72.203 Honeywell F. M. Plc 2016 1.555 5.214 66.911 Honeywell F. M. Plc 2017 0.980 3.504 47.041 Honeywell F. M. Plc 2018 2.585 3.176 57.257 Honeywell F. M. Plc 2019 1.280 2.884 54.114 Honeywell F. M. Plc 2020 0.895 2.787 56.551 Honeywell F. M. Plc 2021 1.190 2.690 74.355 Honeywell F. M. Plc 2022 3.715 2.646 91.031 Honeywell F. M.

Equity Financing and Market Value of Quoted Manufacturing Companies in Nigeria

Abstract

Keywords

References

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