Interplay of Financial Structure and Organizational Characteristics in Explaining Corporate Valuation: Empirical Insights for Policy and Practice in Emerging Market Economies

Purpose: This study examines the determinants of firm value in an emerging market setting, focusing on the roles of liquidity, leverage, firm size, and firm age. It addresses ongoing theoretical and empirical debates on whether firm-specific financial characteristics influence market valuation similarly across institutional environments. Design/Methodology/Approach: A correlational research design is employed using a balanced panel dataset of fifteen insurance firms listed on the Nigerian Exchange Group from 2002 to 2023. Secondary data from audited financial statements are analyzed using panel regression techniques, including random effects, fixed effects, and system Generalized Method of Moments, to control for unobserved heterogeneity, endogeneity, and dynamic effects. Findings: The results show that liquidity and leverage have negative and statistically significant effects on firm value, indicating that excessive cash holdings and high debt levels reduce market valuation in emerging markets. Firm age exhibits a positive and significant relationship with firm value, reflecting the importance of accumulated experience and reputational capital. Firm size is statistically insignificant, suggesting that scale alone does not enhance firm value in the absence of efficiency gains. Implications/Originality/Value: The study provides policy-relevant insights for managers and regulators by emphasizing prudent liquidity and debt management. It contributes to the corporate finance literature by offering robust emerging-market evidence on the interaction between financial structure, firm maturity, and value creation.