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The Influence of Corporate Attributes on the Market Value of Listed Manufacturing Companies in Nigeria

Obafemi, Tunde Olutokunboh, Ph.D, Inyada, Sunday Joseph, EmmanueL, Tolulope Bimpe

Abstract

This study investigates the influence of key corporate attributes on the market value of listed manufacturing companies in Nigeria from 2019 to 2023. Grounded in Signaling Theory, the research examines the effects of firm size, leverage, dividend policy, liquidity, and growth opportunities on market capitalization. Using an ex-post facto research design, a balanced panel dataset was constructed from a purposive sample of 10 leading manufacturing firms listed on the Nigerian Exchange Group . Data were analyzed using descriptive statistics, correlation analysis, and Random Effects panel regression. The findings reveal that firm size (β = 240.54, p < 0.01), dividend policy (β = 850.37, p < 0.01), and growth opportunities (β = 810.46, p < 0.05) have a significant positive effect on market value. Leverage demonstrates a significant negative effect (β = -680.19, p < 0.10), while liquidity shows an insignificant relationship (p > 0.10). The model explains a substantial portion of the variation in market value (Adj. R2 = 0.807). The results affirm that investors in Nigeria’s manufacturing sector rely on scale, dividend commitments, and tangible investments as positive signals of value, while interpreting debt as a risk factor. Strategic recommendations are provided for corporate managers and regulators to enhance value creation and market efficiency. Keyword: Corporate attribute, market value, firm size, and manufacturing firms.

References

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