Effect of Green Financial Management on Firm Value of Manufacturing Firms in Nigeria

This study examined the effect of green financial management on the firm value of manufacturing firms in Nigeria, with specific focus on how green investment ratio, environmental expenditure, and energy efficiency cost influence market capitalization. The study adopted an ex-post facto research design, utilizing panel least squares regression analysis based on secondary data extracted from the published financial statements of Nestlé Nigeria Plc, Nigerian Breweries Plc, and Guinness Nigeria Plc for the period 2015 to 2024, yielding 30 balanced observations. Descriptive statistics, normality tests, and regression diagnostics were performed using EViews 10.0 to ensure model robustness. The results revealed that green investment ratio (Coef. = 49.13960, p = 0.0000), environmental expenditure (Coef. = 50.18141, p = 0.0176), and energy efficiency cost (Coef. = 92.61867, p = 0.0000) all have positive and statistically significant effects on market capitalization. The model recorded an Adjusted R-squared of 0.7867, indicating that 78.67% of the variation in firm value is explained by the explanatory variables. The Durbin-Watson statistic of 2.03 confirmed the absence of autocorrelation, while the F-statistic (720.61, p = 0.0000) demonstrated the overall significance of the model. The study concludes that effective implementation of green financial management practices significantly enhances firm value by improving environmental efficiency, sustainability reporting, and investor confidence. It recommends that manufacturing firms in Nigeria should increase their commitment to green investment, environmental spending, and energy-efficient initiatives to strengthen firm value and achieve sustainable growth.