European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals


Retained Earnings, Corporate Governance and Market-To-Book Value of Listed Firms in Nigeria (Published)

The study analysed the importance of corporate governance practices in strengthening the relationship between retention policy and firm value from 2008 – 2018. The study adopted descriptive survey design and used secondary data. The population of the study comprised of 78 listed manufacturing firms on the Nigeria Stock Exchange as at the end of 2018. Purposive sampling technique was used to select firms with up-to-date published financial data and whose stocks were traded on the stock market totaling 56. The data were analysed using table, percentages and random effect estimation techniques. Findings from the analysis indicated that corporate governance index (t = 2.155, p<0.001), earnings per share (t=5.393, p<0.001) and retained earnings per share (t=9.761, p<0.001) were positively and significantly related to the market-to-book value of firms in Nigeria. The study therefore recommends that a higher level of retained profit of these firms together with efficient management practices through good governance will affect-their values positively.


Keywords: Corporate Governance, Earnings, market-to-book., retained earnings

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