Business Valuation and Internationalization of Listed Companies in Nigeria

Insiders and outsiders frequently have competing interests in international corporations. The complexity of information and monitoring foreign operations raises the costs associated with multinational corporations’ bonding activities. One of the significant events is that equity holders now take value away from minority shareholders. The objective of the study is to study the effect of business valuation on the internationalization of listed companies in Nigeria. The second objective is to assess the effect of moderating effect of firm size on the effect of business valuation and internationalization of listed companies in Nigeria. The study adopted a secondary dataset through the use of purposive sampling technique to select the eleven (11) companies listed on the Nigeria Group exchange from 2011 to 2020. The research, however, used a panel regression analysis which consists of Pooled ordinary least square (OLS) with Cluster Std. Error. The study found that the asset approach insignificantly positively affected internationalization. Income approach and firm age insignificantly and negatively affected internationalization. Also, the market approach significantly and negatively affected the internationalization of listed companies in Nigeria. The study concluded that business valuation significantly affected the internationalization of listed companies in Nigeria (Adj. R square = 0.219; F(3,126) = 13.09, and p-value = 0.000). The result implied that there is a competitive structure to which the companies belongs in that new market. Therefore, the study recommended that management should pursue internationalization strategies to generate economies of scale and achieve resource efficiency.