RISK MANAGEMENT PRACTICES AND MARKET VALUE OF QUOTED MANUFACTURING FIRMS IN NIGERIA
RISK MANAGEMENT PRACTICES AND MARKET VALUE OF QUOTED MANUFACTURING FIRMS IN NIGERIA
Author(s): Aderemi Olalere Adebayo, Oluwatimileyin Esther Adenle, Peter Sunday DarmolaSubject(s): National Economy, Business Economy / Management, Financial Markets, Accounting - Business Administration, Socio-Economic Research
Published by: Ekonomski fakultet, Sveučilište u Mostaru
Keywords: Leverage Risk; Liquidity Risk; Operational Efficiency Risk; Market Share Price; Tobin’s Q;
Summary/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.
Journal: Zbornik radova
- Issue Year: 2024
- Issue No: XXX
- Page Range: 7-30
- Page Count: 24
- Language: English
