The study investigated whether agency cost maters for shareholders’ return of publicly listed Nigerian firms by drawing samples from non-finance firms. Ex-post facto design was used and agency cost was measured using asset tangibility, managerial ownership and remuneration of directors while shareholders’ return was measured in terms of return on equity. Secondary data was obtained for nineteen (19) non-finance firms from the annual published financial statements from 2014-2023. Data obtained were analyzed using descriptive, post-estimation and inferential statistics. The statistical results indicated that while insignificant relationship exists between variables of asset tangibility, directors’ remuneration and shareholders’ return, a significant relationship was found between managerial ownership and shareholders’ return. The implication of this finding is that agency cost variables (asset tangibility and directors’ remuneration) do not matter for increased shareholders’ return while agency cost variables of managerial ownership appears to be a matter for increased shareholders’ return. It recommends that although high ratio of current asset to total asset offer creditors with high level of security, management of firms should endeavor to keep an adequate level of current assets so as to reduce agency cost and increase shareholders return. It also recommends that managerial ownership should be decreased to mitigate agent-principal conflicts and hence improve shareholders’ return.
Keywords: Managerial Ownership, agency cost, asset tangibility, directors’ remuneration, non-finance firms, shareholders return
