FACTORS IMPACTING FIRM VALUE: AN EMPIRICAL STUDY OF PREMIUM BOARD FIRMS IN THE NIGERIAN STOCK EXCHANGE
Ibrahim Para, Mannir Dabo and Bako Gideon David
Volume 8 Issue 1
Abstract
The study examines how factors such as earnings per share, asset turnover, firm growth, return on equity, firm leverage and firm size impact the value of firm which is proxy by price-to-book per share. Panel data regression was used to analyze the audited financial statement of seven out of eight listed premium board firms of the Nigerian stock exchange for the period of 2018-2020. The findings of the study show that earnings per share and firm size positively impacted firm value, while asset turnover and return on equity negative impacted firm value. On the contrary, firm growth and firm leverage do not impact firm value of listed premium board firm in Nigeria. The study recommends that firms in the premium board category should seek a proper debt management and appropriate capital structure mix for the enhancement of firm leverage in order to avoid bankruptcy. Also, assets of reasonable amount should be acquired for the efficient and effective running of the firms so as to increase sales (revenue) as well as value of the premium board firms. Keyword: Firm Value, Earnings, Asset turnover, Firm growth, Equity returns, Leverage, Firm size
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