ABSTRACT:- The valuation of industrial goods firms in Nigeria’s market is a critical focus area, reflecting how capital structure and dividend policy influence investment decisions and broader economic growth. This study empirically examines the impact of financial leverage and dividend payout on the market value of 13 industrial goods firms listed on the Nigerian Exchange Group (NGX) between 2014 and 2023. Using data from published annual reports, the analysis was conducted with EViews software, employing descriptive statistics, correlation analysis, Variance Inflation Factor, Hausman specification tests, and Random Effects regression. The findings reveal that neither the leverage ratio nor the dividend payout ratio significantly affects firm value, measured by Tobin’s Q. Based on these insights, the study recommends two key policy actions: (1) regulatory agencies such as the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), and the Federal Ministry of Industry, Trade and Investment should mandate the periodic disclosure of firms’ capital structure strategies and target leverage ratios to enhance transparency and guide investment; and (2) listed firms should adopt consistent, performance-linked dividend policies to boost investor confidence and long-term market value.

Keywords: Leverage Ratio, Dividend Payout Ratio, Tobin’s Q