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
Do Drivers of Corporate Governance Influence shareholder Value (Published)
This study examines effect of drivers of corporate governance on shareholder value. Data from annual financial reports of listed manufacturing companies in Nigeria were analysed and tested using panel dynamic ordinary least square model and panel unit root tests. Most variables used as proxies for shareholder value responded positively to variations in audit independence while there is a non-significant effect of audit independence on all variables used as proxies for shareholder value. Board independence has a positive and non-significant effect on shareholder value whereas board size and audit size negatively and non-significantly affect shareholder value. The study further reveals that audit size, board size and board independence have negative and non-significant impact on the economic value added which represents the market value of shareholder assets. Only audit independence has a positive and non-significant impact on economic value added. Corporate governance drivers are efficacious but do not influence shareholder value significantly.
Keywords: Audit Committee, Board size, Corporate Governance, Environment, Independence, Shareholder value