IDEAS home Printed from https://ideas.repec.org/a/dug/journl/y2022i2p47-57.html
   My bibliography  Save this article

Financial Strength, Financial Performance and Firm’s Value in Multinational Companies in Nigeria

Author

Listed:
  • Augustine E. Osho

    (Ekiti State University)

  • Mathew Olusola Omole

    (Achiever University)

Abstract

This study examined the relationship between financial strength, financial performance and firm’s value of multinational companies in Nigeria. The main objective of the study is to study the effects of financial strength and financial performance on firm’s value of a multinational company in Nigeria. This Study is based on signally theory. Secondary sources of data were sourced from Central Bank of Nigeria Statistical Bulletin and annual report of the selected multinational company in Nigeria. Ordinary Least Square Linear Regression model was used in analyzing the data. Findings show Quick Ratio (QR) has a significant positive relationship with firms’ values, Debt to Equity Ratio (DER) has a significant negative relationship with Firms’ values, Debt to Assets Ratio (DAR) has a significant positive relationship with Firms’ values while Cash Flow Ratio has a significant positive relationship with firms’ values as proxies for financial strength. Return on Capital Employed (ROCE) as proxy for financial performance has a significant positive relationship with firms’ values of multinational companies in Nigeria. The study concluded that, if multinational companies build strong financial strength to improve their financial performances, their market value would be sustained.

Suggested Citation

  • Augustine E. Osho & Mathew Olusola Omole, 2022. "Financial Strength, Financial Performance and Firm’s Value in Multinational Companies in Nigeria," EuroEconomica, Danubius University of Galati, issue 2(41), pages 47-57, November.
    • Handle: RePEc:dug:journl:y:2022:i:2:p:47-57
    as

    Download full text from publisher

    File URL: https://dj.univ-danubius.ro/index.php/EE/article/view/2003/2272
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:journl:y:2022:i:2:p:47-57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Nuta (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.