This study investigates the effect of asset financing policy on the market valuation of listed food and beverage firms in Nigeria, using panel data covering the period 2014–2023. Thirteen firms listed on the Nigerian Exchange Group were examined through a census approach, with market valuation proxied by Tobin’s Q and asset financing policy captured by capital expenditure, fixed asset ratio, and debt maturity structure. Grounded in the Modigliani–Miller theorem and extended by the trade-off, pecking order, agency, and signaling theories, the study recognizes that financing decisions matter in imperfect markets such as Nigeria, where information asymmetry and financing frictions prevail. The methodology employed descriptive statistics, panel unit root tests, and fixed and random effects regression models, with the Hausman test confirming the appropriateness of the fixed effects specification. The empirical results reveal that capital expenditure exerts a positive and statistically significant effect on market valuation, suggesting that investors reward firms that invest strategically in long-term productive assets. Debt maturity structure also shows a strong positive influence on Tobin’s Q, indicating that longer-term debt enhances firm value by reducing refinancing risk and improving financial stability. In contrast, the fixed asset ratio has a negative and significant effect on market valuation, implying that excessive asset rigidity undermines flexibility and investor confidence. The model explains a substantial proportion of variations in firm value, underscoring the importance of firm-specific financing decisions. The findings provide robust evidence that asset financing policy is a key determinant of market valuation in Nigeria’s food and beverage sector. The study offers practical implications for managers, investors, and policymakers, emphasizing the need for balanced asset financing strategies that support growth while preserving financial flexibility.