RISK MANAGEMENT STRATEGIES AND CORPORATE VALUATION OF LISTED MULTINATIONAL FIRMS IN NIGERIA

This study examines the effect of risk management strategies on the corporate valuation of listed multinational firms in Nigeria over the period 2015–2025. Specifically, the study evaluates the effects of risk avoidance, risk mitigation, risk transfer and risk control on corporate valuation. Using a longitudinal panel research design, secondary data were obtained from the annual reports and financial statements of listed multinational firms. Corporate valuation was measured using Tobin’s Q, while panel regression analysis was employed to estimate the specified relationships. The Hausman specification test supported the random-effects model. The findings revealed that risk avoidance and risk mitigation have positive but insignificant effects on corporate valuation, while risk transfer and risk control exhibit negative but non-significant on corporate valuation effects. However, the four risk-management strategies jointly exerted a significant effect on corporate valuation. The study concludes that individual risk-management strategies may not independently generate significant valuation effects, but their integrated application remains relevant to corporate valuation. The study recommends that listed multinational firms adopt an integrated risk-management framework that aligns risk-response mechanisms with strategic and valuation objectives. The study contributes to the risk-management literature by providing evidence on the valuation implications of specific risk-management strategies within the Nigerian multinational-firm context.