The relationship between intangible assets, specifically goodwill and software, and a firm’s market value remains underexplored, especially in emerging economies like Nigeria. This study aims to investigate the impact of goodwill and software assets on the market value of listed manufacturing firms in Nigeria, using both quantitative and theoretical approaches. The sample includes firms listed on the Nigerian Stock Exchange between 2010 and 2023, with market capitalization as the dependent variable. Independent variables include goodwill and software assets, while control variables such as firm size is also considered. The study employs the Least Squares Dummy Variable (LSDV) regression model to estimate the relationships. The findings reveal that while software investments have a significant positive impact on market value, goodwill assets do not show a statistically significant relationship with market capitalization in the Nigerian context. These results challenge conventional wisdom in developed markets, where goodwill is often seen as a key driver of firm valuation. The study suggests that in Nigeria, the market may not fully recognize or value goodwill as a major determinant of firm value, likely due to differences in investor perceptions, regulatory frameworks, and financial reporting practices. Given the growing importance of technology, the study recommends that firms should prioritize software investments to enhance their market value. Policymakers and regulators should also consider improving the transparency of intangible asset reporting to support better market efficiency.
Keywords: Nigeria, firm market value, goodwill, listed manufacturing firms, software assets
