Effect of liquidity and financial leverage risk management on firm value of Commercial banks in Nigeria.

Businesses world wild are full of risks and uncertainties which hamper business growth and in some extreme cases constitute existential threat. The study explores the effect of liquidity and financial leverage risk management on quoted book value of commercial banks in Nigeria from 2012 to 2024. Ex-post Facto research design was adopted for the study. Data were collected from Central Bank of Nigeria Statistical Bulletin and annual reports of the selected firms. Data were analyzed using descriptive and inferential statistics. After diagnostic test, Ordinary Least Square was used for data analysis. Result revealed non-significant effect of liquidity risk, firm financial leverage on quoted book value. The key implication of the result is that adequate and integrated risk management, which caters to liquidity, and financial leverage interest rate exposures, is critical to sustaining firm value, promoting financial resilience, and preserving investor confidence in Nigerian commercial banks. The study recommends that commercial banks in Nigeria should work to strengthen their liquidity risk management frameworks by improving Asset–Liability management, sourcing heterogeneous funding structures, and maintaining sufficient liquidity buffers. Also, banks should include in their risk management practices prospective macroeconomic indicators that would ensure that the lending and pricing of assets reflect inflationary pressures. Finally, banks should strive for an optimal capital structure that balances a prudent usage of debt with adequate equity financing.