EFFECT OF CORPORATE ASSET TANGIBILITY ON FIRM VALUE OF LISTED MANUFACTURING FIRMS IN NIGERIA

This study investigates the effect of corporate asset tangibility on firm value among listed manufacturing firms in Nigeria from 2015-2024. Using an ex-post facto research design and secondary data from 15 selected firms through purposive sampling technique, The study employed panel regression models with robust standard errors to analyze the data. The research was guided by three key hypotheses, which were analyzed using Tobin's Q, Return on Equity (ROE), and Price-to-Book Value (PBV) as proxies for firm value. The study found a significant negative effect of asset tangibility on Tobin's Q, leading to the rejection of the null hypothesis. This suggests that a greater reliance on physical assets can be perceived negatively by the market, possibly due to concerns about limited growth potential or a lack of intangible assets. In contrast, the study found no significant effect of corporate asset tangibility on either Return on Equity (ROE) or the Price-to-Book Value (PBV) ratio. This led to the acceptance of the null hypotheses for these relationships, indicating that tangible assets may not be a primary driver of profitability or market valuation relative to book value in this sector. The findings align with some prior research showing negative associations between asset tangibility and market-based valuations, but they diverge from other studies that emphasize a positive link to profitability. The study concludes that the relationship between asset tangibility and firm value is complex, highlighting the need for Nigerian manufacturing firms to diversify their asset base to include more intangible assets to enhance their market perception.