CAPITAL STRUCTURE AND EFFICIENCY MANAGEMENT PRACTICES ON FIRM VALUE OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA

Abstract

In spite of global acknowledgment of an importance of capital structure and efficiency management on firm value of listed non- financial companies. There is lack of sufficient empirical evidence specific to the Nigerian business environment. This gap inhibits the development of targeted financial strategies for optimizing firm value. Given the foregoing this study examined capital structure and efficiency management practices on firm value in Nigeria. Seventy (70) selected listed non-financial firms that had consistently published their audited annual financial reports from 2011 to 2022 were used in the study, which used an ex post facto research design to achieve these objectives. The data was analyzed using panel multiple regression techniques with the assistance of statistical tools (Eview 10). The study's findings showed that, whereas efficiency management techniques have a negative and insignificant impact on the firm value of listed non-financial companies in Nigeria, capital structure management has a positive and significant impact on that value. The research study found that while Turnover to Total Asset showed a negative and. insignificant effect on Tobin q (firm value) of non-financial companies in Nigeria, Debt to Equity Ratio (DTER) had a positive and substantial effect on this measure. However, it was then recommended that non-financial companies' management should strive to strike a balance between equity and debt (WCM) that reduces the cost of financing while maintaining a reasonable level of financial risk and avoid excessive reliance on debt, which can increase financial leverage and risk, but also be mindful not to dilute equity excessively, which can impact on the value of shareholders.