Ahmadu Abubakar2024-05-302024-05-302020-11-109789674408558http://fem.usim.edu.my/ibaf2020-proceeding/https://oarep.usim.edu.my/handle/123456789/17394e-Proceedings of The 9th Islamic Banking, Accounting and Finance International Conference 2020 (iBAF2020) “Navigating the New Normal in Islamic Finance and Wealth Management” 10th – 11th November 2020, Malaysia Organized by: Faculty of Economics and Muamalat,USIM Page: 376-384This study investigated the impact of market risk on the market value, using panel data evidence from the annual reports and financial statements of 8 listed deposit money banks in Nigeria over a 10-year period from 2010 to 2019. Descriptive statistics and random effects model were utilised in the analysis of data. Results indicate that degree of financial leverage has significant and positive impact on the market value, while interest rate risk and foreign exchange exposure have no significant impact on the market value measured by Tobin’s Q. The study concludes that listed deposit money banks in Nigeria were able to trade-off the tax shields benefit of debt against the cost of financial distress; thereby expanding their earnings. The study recommends that banks should expand their investment in fixed income securities in order to increase their earnings.en-USMarket risk, market value, deposit money banks, random effects, Tobin’s QArticle376384