Financial Management Strategies and Firm Value of Service Firms in Nigeria
Keywords:
financial management strategies, firm value, debt to equity ratio, current ratioAbstract
The study examined the financial management strategies and firm value of service firms in Nigeria. The study developed two objectives such as to; Ascertain the effect of current ratio on firm value of service firms in Nigeria; examine the effect of debt to equity ratio on firm value of service firms in Nigeria. Two research questions and hypotheses are formulated in line with the objectives. This research work will be anchored on the financial theory of investment. The study adopted expo-facto research design. Data were generated from secondary source, from annual report of the selected firms. The hypotheses were tested using panel least square analysis method at 0.05% level of significance. The findings of the study revealed that Current ratio has significant effect on firm value of service firms in Nigeria.. (t-test 2.871798, p=0.0051). Debt to equity ratio has no significant effect on the firm value in Nigeria (t-test 1.430783, p=1.8558). The study recommends that; Firms should prioritize maintaining a strong Current Ratio by implementing effective financial management strategies, ensuring that short-term obligations are met without compromising operational efficiency. Management should focus on optimizing the Debt to equity ratio while balancing it with investment opportunities that yield higher returns.
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