This paper examine whether managerial ownership impact upon shareholder wealth through efficacy or otherwise in the utilization of organizational resources. Specifically, it evaluates the causal mechanism of managerial shareholding on value via agency costs rather than just the direct effect. Herein, the study adopted structural equation modeling that enable estimate direct and indirect causal effect pathways for 64 firms listed at the Nairobi Securities Exchange as at 31st December 2017. The results show that managerial shareholding exerts negative influence on asset utilization and in turn a marginal positive effect is routed to shareholders wealth. The findings yield unequivocal substantiation that managerial shareholding is not only directly associated with shareholders wealth but also influences the investors wealth indirectly through efficacy in utilization of organizational resources.