EFFECT OF FIRM SIZE ON NON-CURRENT ASSETS AND FIRM VALUE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

The desire to map out strategies to enhance the values of firms have been on the front burner of decisions of top management. This study investigated moderating effect of firm size on the relationship between non-current assets and firm value of listed consumer goods firms in Nigeria over the period 2014-2023. The independent variables of the study were property, plant and equipment, long term investments and intangible assets, while the dependent variable was firm value. The study had a population of 21 while the sample size was 17, which was arrived at using purposive sampling technique. The study was analysed using multiple regression technique through the aid of STATA 14 software. The study found that PPE and firm size had positive and significant effect while long term investment had negative and significant effect. However, intangible assets had positive and non-significant effect on firm value. Thus, the null hypotheses were rejected for most of the key variables, particularly those relating to PPE, long-term investments, firm size, and their interactions. This indicates that these variables significantly influence firm value, both directly and through the moderating role of firm size. However, the null hypotheses for intangible assets, return on assets, and the interaction between intangible assets and firm size failed to be rejected, implying no significant influence in this model. It was recommended, amongst other,s that firms in the consumer goods sector continue to prioritize investments in these tangible operational assets. Firms should strategically channel resources toward upgrading outdated machinery, expanding production capacity, and maintaining physical infrastructure. Also, firms should perform rigorous cost-benefit analyses on existing long-term investments and consider divesting from non-performing assets. Furthermore, intangible assets are either underreported or undervalued in financial statements, thereby limiting their perceived contribution to firm value. Firms should adopt improved methods of identifying, valuing, and reporting intangible assets in compliance with international accounting standards.

Keywords: Firm value, Non-current assets, Property plant and equipment, Long-term investments, Intangible assets