Title: Effect Of Financing Decisions On Shareholders Assets Value Of Listed Consumer Goods In Nigeria.
Authors: MADAKI, Dauda., ABBAYA, Mohammed Lawan & BELLO, Hassan
Volume: 10
Issue: 2
Pages: 23-32
Publication Date: 2026/02/28
Abstract:
This study examines the effect of financing decisions on shareholders assets value of listed consumer goods in Nigeria from 2014-2023. Proxies to measure financing decisions are equity assets and retained earnings, while shareholders assets value is proxied by Tobin's Q. The secondary data was sourced from the individual financial reports of the listed consumer goods firms in Nigeria. The sample adopted eighteen (18) listed consumer goods firms out of the twenty (20) listed consumer goods firms in Nigeria. The study employed fixed effect regression model to estimate the key relationship between debt financing on shareholders assets value of listed consumer goods in Nigeria. The result shows that equity financing had a positive significant effect on shareholders assets value of listed consumer goods in Nigeria. while retained earning had no significant effect on shareholders assets value of listed consumer goods in Nigeria The study recommended that managers of consumer firms should adopt capital structures that strategically incorporate higher equity proportions. Increasing equity capital through public offerings, rights issues can strengthen investor confidence and reduce financial distress risks, thereby improving market valuation. Also, the management of consumer firms should maintain transparent dividend policies that balance shareholder returns with the need for reinvestment, as poor communication of retention strategies may dampen investor perception and consequently firm value.