Effect of Firm Financial Attributes on Value of Listed Consumer Goods Companies in Nigeria

The paper focuses on the effect of the Firm financial attributes on value of listed consumer goods firms in Nigeria. The research is based on using a quantitative methodology and linear regression analysis concentrating on profitability, leverage and liquidity status as the factors defining firm value. This analysis uses data reviewed in the Nigerian Stock Exchange between 2013 and 2023 of a purposive sample of 16 companies listed in the Nigerian Stock Exchange. The results bring out that profitability plays a considerable role in firm value, which means that a firm with excellent profitability results in a better market value. On the other hand, the lever does not demonstrate a statistically significant influence on a firm value, and liquidity demonstrates a positive and non-insignificant influence. Firm value is discovered to be negatively affected strongly by firm size, which means that there is a tendency to ascertain a lower value among the larger firms within this sample. The findings reiterate the essence of profitability managing in boosting market competitiveness and shareholder value in the consumer goods market in Nigeria. It comes to the conclusion that profitability turns out to be a powerful method in predicting the firm value with highly significant negative relationship. What is more, leverage lacks the statistical impact on firm value, indicating that taking advantage of debt may not be beneficial in terms of increasing shareholder value in this case. Nevertheless, the practice of liquidity management ought to be aimed at satisfying the short-term debts at the expense of the long-term value of the firm. On the basis of findings, the companies should focus on practices that will enhance profitability ratio of the companies like Return to Assets (ROA). There should be strategic control over the level of leverage in order to have a balanced financial structure and even improve on market value. Efficient allocation of resources and strategic decision making should enable firms to maintain financial performance and competitiveness in a bid to overcome their existing size advantages in the consumer goods industry.