KIU Interdisciplinary Journal of Humanities and Social Sciences
Copyright© 2023 by authors; licensee KIJHUS. This article is an open access article and can be freely accessed and
distributed.
FIRM VALUE AND ITS CHARACTERISTICS: EVIDENCE FROM LISTED HEALTHCARE
ENTERPRISES IN NIGERIA
Hakeem Tomi Saliu
1
Dare Joseph Enimola
2
Nurudeen Yakubu Zakariya
3
1,2,3
Prince Abubakar Audu University, Anyigba, Nigeria
*Corresponding Email: saliuhakeemtomi@gmail.com
Citation: Saliu, H.T., Enimola, D.J., & Zakariya, N.Y. (2023). Firm Value and its Characteristics:
Evidence from Listed Healthcare Enterprises in Nigeria. KIU Interdisciplinary Journal of
Humanities and Social Sciences, 4(1), 90-109
ABSTRACT
This study examined firm value sequel to the firm characteristics of listed Healthcare Enterprises
within the Nigerian context. The goal is to determine how the selected firm characteristics
influence value of Nigerian healthcare enterprises. Ex-post facto design was employed to
conduct this study; and this involved the application of panel data. Two proxies represented firm
value; share prices and Tobin’s Q. Secondary data gathered from the annual financial reports of
the 10 firms was analyzed using panel data regression. Firm size was found to have positive
impact on the firm value of listed Enterprises in the Healthcare Sector of Nigeria. The study also
discovered that liquidity had a negative substantial impact on the firm value, implying that
having too much liquidity is detrimental to the firms' value. It was found that financial leverage
has a significantly negative impact on firm value. The study recommended that Healthcare
Enterprises' management should expand their investment portfolio in order to broaden their
scope of operations. Healthcare Enterprises neither should create solid current asset
management procedures to guarantee that inadequate nor are unneeded funds invested in
current assets.
Keywords: Firm Characteristics, Firm Value, Healthcare Firm, Firm Size, Liquidity and Stock Firm
Value, Operational Efficiency
INTRODUCTION
The importance of the healthcare industry to the overall economy's growth and
development cannot be overstated. The health industry is vital to socio-economic
development. There is sufficient evidence associating productivity to healthcare service.
Nigeria's goal of becoming one of the world's top 20 economies by 2020 is inextricably
linked to the growth of its human capital through the health sector (Troya et al., 2019).
Aside from the ministries, departments, and parastatals of the federal, state, and local
governments, the healthcare sector is among the industry in terms of labor