IMPACT OF FIRM CHARACTERISTICS ON FIRM VALUE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Firm value of money deposit banks in Nigeria has been an issues of concern among the depositors. There could be some factors that hinders such value. As such, this study aim is to investigate the firm characteristics on firm value of 13 Deposit Money Banks that are listed on the 31^st December, 2023 under the umbrella of regulatory Nigeria Exchange of Stock. The period covered in the course of this study is 10 years which consist of 2014-2023. In measuring, firm value was connected to value of market equity plus debts of total divided by the summation all assets. Firm characteristics measured are as follows; firm size, (natural log of total assets), firm leverage, (total debt/total assets), firm age, (the number of years when firms are listed in Nigeria stock exchange and start operation). The research design of Ex-post facto was employed in this study. During data analysis the following were obtained because of the nature of the study; descriptive statistics, regression analysis, random effect, fixed effect and hausman test analysis. After testing the hypotheses, firm age was found to have a strong relationship with firm value. Meanwhile, other variables which include leverage and firm size are negatively related to firm value. Therefore, the study recommends the managers of these industries to effectively utilize the industries resources by investing the shareholder’s money into profitable ventures and to ensure better returns.