Current and Quick Assets on Firm Value of Listed Non-Financial Firms in Nigeria: The Moderating Role of Dividend Policy

Firms face several challenges in enhancing their value, including poor governance, financial mismanagement, weak liquidity, and ineffective dividend policies, which can hinder profitability and investor confidence. This study examines the effect of current assets, quick assets on firm value of listed non-financial firms in Nigeria, with a focus on the moderating role of dividend policy. The study employs an ex post facto with emphasis on longitudinal panel research design in analyzing data from 70 firms over the period 2013–2024 collected from published financial statement of listed non-financial firms in Nigeria. Data collected was analyzed using panel regression analysis in EViews-13 software. The reveal that current ratio and quick ratio both has an insignificant effect on Tobin's Q of listed non-financial firms directly but significant effect when moderated by the dividend payout ratio. The study concludes that dividend policy plays a crucial moderating role in influencing the effect of liquidity on firm value of listed non-financial firms in Nigeria. Based on these findings, the study recommends that the listed non-financial firms should continue to focus on improving their liquidity by optimizing their current and quick ratio to strengthen the relationship between liquidity and firm value.

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