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EFFECTS OF FINANCIAL PERFORMANCE, CAPITAL STRUCTURE, AND FIRMS SIZE ON FIRMS’ VALUE OF LISTED CONGLOMERATES IN NIGERIAN STOCK EXCHANGE
One of the major problems of businesses nowadays is the inability to distinguish the combination of capital structure that can yield more values. Therefore, this study evaluates the effects of financial performance, capital structure and firm size on firms’ value of 6 quoted conglomerates in Nigerian Stock Exchange as at the 31stDecember,2021. The study covered a period of 6 years(2016-2021). Return on Capital Employed, Return on Assets and Return on Equity measure financial performance; Short-term debt/Total assets, Long-term debt/Total Assets and Total Debt/Total Assets measure the structure of capital; total assets measure the size of the firm while Tobin's Q is set to measure value of the firm. The study employed ex-post facto research design and longitudinal panel which comprises cross sectional and time series data. The data were analyzed using descriptive statistics and regression. The study revealed that all other independent variables have positive effect on firm value with the exception of Capital Employed that has insignificant influence on firm value (Tobin's Q). Thus, the recommendations made by this study are; the conglomerates management are expected to finance their business using more of short debt since it improves value of the firms and stop making use of long term debt as it deceases the value expectation. Also, the organization should place emphasis on total assets owed by the firm and value of the firms.
Financial performance, Capital structure, Firm size and Firms’ value