ASSETS MANAGEMENT AND VALUE OF LISTED INDUSTRIAL FIRMS IN NIGERIA IN NIGERIA
Keywords:
Assets management, Current asset turnover ratio, Fixed asset turnover ratio and Firm valueAbstract
The study examined the effect of asset management on the firm value of listed industrial firms in Nigeria. The specific objectives are to: examine the extent to which current asset turnover ratio affects the Tobin’s Q of listed industrial firms in Nigeria; and determine the extent to which fixed asset turnover ratio affects the Tobin’s Q of listed industrial firms in Nigeria. The ex-post facto design was adopted in examining the effect of asset management on the firm value of listed industrial firms in Nigeria. A sample of nine industrial goods was used for the study. Data were extracted from the annual reports and accounts of the sampled firms from 2013 to 2023. Data were gathered and input into E-View 9.0 software for the computation of both independent and dependent variables. The analysis was conducted using descriptive statistics and ordinary least squares (OLS) regression. The findings revealed that: the Fixed Asset Turnover Ratio (FITR) presents a coefficient of 0.005509 and a p-value of 0.831, revealing a positive but again statistically insignificant effect on Tobin's Q; Current Asset Turnover Ratio (CUTR), the coefficient is -0.002266 with a p value of 0.001. Based on the findings, the study recommended among others that management teams of listed industrial firms enhance their current asset management practices to improve efficiency by adopting more sophisticated inventory management systems and optimizing working capital, thereby driving higher revenue generation from current assets
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