Corporate Attributes and Shareholder Value of Listed Manufacturing Companies in Nigeria (Published)
The challenge of maximizing shareholder value remains a persistent concern for companies, particularly in volatile markets where economic pressures adversely affect business performance. This challenge underscores the need to identify the corporate attributes that drive shareholder value. Consequently, this study examined the effect of corporate attributes on the shareholder value of listed manufacturing companies in Nigeria. The research design adopted for this study was ex post facto, and the population consisted of 53 manufacturing companies out of which the sample size of 45 companies was purposively selected. The data source was secondary, method of data analysis used was panel least square regression analysis and the statistical package employed was STATA 17. The findings of the study revealed that firm size (Coef. 0.000[0.985]) has nonsignificant effect on total shareholders’ returns; firm age (Coef. -0.357[0.296]) has nonsignificant effect on total shareholders’ returns; and free cash flow (Coef. 0.091[0.009]) has significant positive effect on total shareholders’ returns of listed manufacturing companies in Nigeria.
It was concluded that the creation of shareholder wealth in the Nigerian manufacturing sector is primarily driven by sustainable revenue growth, effective dividend policy, and prudent cash flow management. Based on the findings of this study, it was recommended that the management of manufacturing firms should integrate cash flow planning into corporate strategy to ensure efficient allocation to high-value initiatives, thereby enhancing investors’ confidence and promoting sustainable wealth creation.
Keywords: Shareholder value, corporate attributes, firm age, firm size, free cash flow, shareholder total return
Responsiveness of Biological Assets to Board size, Firm size, and Firms’ age of Agricultural Firms in Nigeria (Published)
This study examined the responsiveness of biological assets to board size, firm size and firm age of quoted Agricultural firms in Nigeria. The specific objectives were to examine the effect of board size, firm size, and firm age on the biological assets of quoted Agricultural firms in Nigeria. An ex-post facto research design was used which made use of secondary panel data drawn from annual reports and accounts of the sampled firms for a period of ten (10) years, 2011-2020. Panel least squares were applied in the test of hypotheses. The result of the analysis showed that board size, firm size and firm age have an insignificant effect on biological assets. The implication is that none of the three variables can predict the increase or decrease in biological assets of agricultural firms in Nigeria. The study recommends that agricultural firms should maintain a robust board size so that they can continue to reap the benefits of the two good heads theory. Efforts should be made to ensure continuous firm growth because of the positive link it has with biological assets. Firms are encouraged to continuously effect changes in both assets and other activities that may be affected by the age of the firm. Management should maintain current innovations in the industry to attract new investors, boost productivity and enhance shareholders’ funds.
Citation: Nnajieze E.I., Igwe A.O., Nwabuisi A.O. (2022) Responsiveness of Biological Assets to Board size, Firm size, and Firms’ age of Agricultural Firms in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 11, pp.36-51
Keywords: Board size, Leverage, Liquidity, Profitability, biological assets, firm age, firm size, nigeria agricultural sector
Impact of Social Costs on Financial Performance of Listed Firms in Nigeria (Published)
To succeed in the business world, organisations need to provide reliable and credible efforts to their stakeholders, to ensure that their business activities would not harm the safety of stakeholders in the area where they are operating. The operation of business conducts in recent time, changes drastically due to the emergence of an increasing number of external factors which impose on corporate performance. Hence, this study examined the impact of social costs on the financial performance of listed firms in Nigeria. The study adopted ex-post facto research designs. Secondary data sourced from the published annual reports of 52 firms, purposively selected for a period of 11 years (2008 to 2018), giving 572 firm-year observations. Data analysed by panel data regression of pooled OLS, random effects, fixed effects models and the Feasible General Least Squares (FGLS) regression for the objectives. Findings revealed that Social Costs (SOCO) had significant and positive effect on ROA (R2 = 0.42, β = 0.202, t(570) = 4.869, p < 0.05). In addition there is evidence that SOCO, firm age, firm size and leverage jointly exerted significant effect on ROA (Adj.R2 = 0.608, F(6, 565) = 5904.01, p < 0.05). The study concluded that social costs have a significant impact on the financial performance of listed firms in Nigeria. It recommended that the practice of elimination of social costs should be intensified by corporate firms to improve on their business reputation.
Keywords: Leverage, Return on Assets, business reputation, firm age, firm size, social costs