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

Abstract

Persistent uncertainty exists regarding whether investments in non-current assets by listed consumer goods firms in Nigeria have effectively translated into improved market valuation, as prior evidence remains mixed and inconclusive, particularly within emerging market contexts. This study examined the effect of non-current assets on the value of listed consumer goods firms in Nigeria, using Tobin's Q as a measure of firm value. A quantitative ex post facto research design was employed, and panel data were sourced from the annual reports and audited financial statements of listed consumer goods firms on the Nigerian Exchange Group covering the period 2014 to 2024. The data were analysed using fixed-effects panel regression. The findings revealed that property, plant and equipment had a positive and statistically significant effect on firm value, long-term investments had a negative and statistically significant effect on firm value, while intangible assets had a positive but statistically insignificant effect on firm value. The study concluded that firm value in Nigeria's consumer goods sector was driven by the strategic alignment and efficient utilisation of non-current assets rather than their mere accumulation. The study recommended that firms prioritise productive investments in property, plant and equipment, critically review and realign long-term investment portfolios with core operations, and strengthen the valuation, impairment, and disclosure of intangible assets in line with IFRS requirements to enhance firm value.

Keywords: Firm value; Property, plant and equipment; Long-term investments; Intangible assets.