This study examines the relationship between green financing and firm value of listed firms in Nigeria for the period 2010 to 2024, using a balanced panel dataset of 151 firms quoted on the Nigerian Exchange Group (NGX). Drawing on Stakeholder Theory, Resource-Based View (RBV), and Signalling Theory, the study employs panel regression techniques—specifically fixed effects (FE) and random effects (RE) models—validated through the Hausman specification test, alongside a system Generalised Method of Moments (GMM) estimator to address potential endogeneity concerns. Green financing is operationalised through green bond issuance, environmental capital expenditure, and sustainability-linked financing ratios. Firm value is measured using Tobin's Q and Market-to-Book Value (MBV). Control variables include firm size, industry type, firm age, board size, R&D expenditure, CEO characteristics, ownership structure, and financial performance. The results reveal that green financing exerts a statistically significant positive effect on firm value, suggesting that environmentally responsible financing strategies enhance investor confidence and long-term shareholder wealth creation. Firm size, financial performance, and R&D expenditure also emerge as significant value-enhancing factors. The findings carry implications for corporate managers, investors, policymakers, and regulators in Nigeria's evolving sustainability landscape. This study is the first to offer large-sample, longitudinal panel evidence on green financing and firm value nexus specifically within the Nigerian context, contributing original empirical insights to the sustainability-finance literature.
Onipe Adabenege Yahaya (2026) studied this question.