EFFECT OF RENEWABLE ENERGY INVESTMENTS ON FIRM VALUE IN NIGERIA

This study examines the effect of renewable energy investments on firm value among 148 Nigerian publicly listed firms from 2010 to 2024. Using panel data and fixed-effects models, we analyze the relationship between renewable energy investments and firm value (measured by Tobin's Q), controlling for firm size, profitability, leverage, growth opportunities, and firm age. Results reveal a statistically significant positive relationship (β = 0.347, p < 0.01), indicating that renewable energy investments enhance shareholder wealth by approximately 12.4%. The findings demonstrate that strategic allocation toward renewable energy creates tangible value through operational efficiency, enhanced reputation, stakeholder relationship management, and competitive positioning. Firm profitability and growth opportunities positively moderate this relationship, whereas leverage negatively moderates it. This research contributes to sustainable finance literature in emerging markets and provides empirical evidence supporting the business case for renewable energy investments in resource-constrained contexts.