Asset Structure and Market Value of Quoted Consumer Goods Companies in Nigeria
DOI:
https://doi.org/10.67487/10.67487/ijprss.v2i2.294Keywords:
asset structure, market value, tangible assets, intangible assets, panel data regressionAbstract
Assets are essential resources for quoted companies for the purpose of generating revenue. Managers of public companies are expected to acquire and accumulate these assets in such a way that profits as well as shareholders’ wealth are maximized. Quoted consumer goods companies in Nigeria are not excluded, as assets are used in conducting business activities. Thus, it is important to assess the influence of asset structure on the market value of these entities. This study was conducted to examine the influence of asset structure on the market value of quoted consumer goods companies in Nigeria from 2013 to 2022. The ex-post facto research design was employed in the study. There were twenty-one (21) consumer goods companies on the floor of the Nigerian Exchange Group (NGX) as of December 2022. The census sampling method was adopted, as the twenty-one (21) entities were studied on the basis of availability of data in accordance with the variables of the study. The dependent variable was Market Value (MV), while the independent variable was Asset Structure (AS), measured by Tangible Assets (TANG), Intangible Assets (ITA), and Current Assets (CA). Panel data were collected from annual reports and financial statements of the sampled entities from 2013 to 2022. The data were analyzed using descriptive and inferential statistics. A fixed-effect linear regression technique was used in the study. From the analyses, it was revealed that TANG, ITA, and CA had positive and significant influence on MCAP of quoted consumer goods companies in Nigeria (TANG, β=3.9465, tstat=13.488, p-value=0.0000, Adjusted R²=0.7924; ITA, β=5.7252, t-stat=3.5569, p-value=0.0005, Adjusted R²=0.5512; CA, β=3.8290, t-stat=3.5334, p-value=0.0006, Adjusted R²=0.5507). It was concluded that intangible assets exerted the highest influence on the market value of quoted consumer goods companies in Nigeria. It was recommended that adequate investment and effective management should be done on the key variables of asset structure, such as tangible, intangible, and current assets, for the purpose of increasing market value of those entities in Nigeria.
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