Shareholders return and value of manufacturing firms listed on the Nigerian stock exchange

Oyeyemi, Ogundajo Grace; Enyi, Enyi Patrick; Emmanuel, Oyedokun Godwin

doi:10.5897/ajbm2018.8678

Cited by 4 publications

(4 citation statements)

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“…The relationship between CSRTC and EVA {B4 = -16.449, P>0.05} is negative and not significant. This outcome is in line with the finding of the research of Oyeyemi, Enyi and Emmanuel (2019) where it was found that sales growth (an indicator of responsibility to customers) negatively and non-significantly influenced value of the firm.…”

Section: Test Of Hypothesis Foursupporting

confidence: 91%

“…Firm value is determined by the buying public (Exforsys, 2015). In the research of Oyeyemi, Enyi and Emmanuel (2019), it was found that growth in sales had non-significant negative effect on firm value while Neupane (2014) confirmed in UK Lloyds Bank that customer satisfaction and performance had a non-significant positive relationship (p=.139 or >.05; β=.343).…”

Section: Corporate Social Responsibility (Csr) To Customers and Econo...mentioning

confidence: 94%

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Corporate Social Responsibility and Shareholders’ Wealth of Industrial Goods Producing Companies Listed on the Exchange Group PLC of Nigeria

Inyang,

Joel,

Obeten

et al. 2023

J. Professional Business Review

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Purpose: The purpose of this study is to determine how the practices of corporate social responsibility (CSR) influence the wealth of shareholders of industrial goods producing companies listed on the Exchange Group Plc of Nigeria and other developing countries. Theoretical Framework: The role played by CSR practices in enhancing shareholders’ wealth has attracted the interests of companies’ executives and policy makers all over the world. The theoretical foundations of this research work are provided by the Shareholder Value Theory, the stakeholder theory, the Business Ethics theory and the Agency theory. However, this work is anchored on the shareholder value theory propounded by Milton Friedman in 1970 and this is used to evaluate the influence of corporate social responsibility on shareholders’ wealth. Design/methodology/approach: The study uses the ex-post facto research design and judgemental sampling technique to select a sample of 10 industrial goods producing firms listed on the Nigerian Exchange Group Plc as at 31st December, 2021. Social responsibility relationships with the society, employees, suppliers, customers, tax authorities and lenders provide the basis for sample selection. Information from the financial statements of the sampled companies was used to compute weighted average cost of capital (WACC), rate of stock turnover, actual corporate tax rate, invested capital, leverage, return on equity (ROE), value of debts and value of equity. This approach facilitates the computation of economic value added (EVA) which is used as proxy for shareholders’ wealth. Firm-year observations of 1,840, ordinary least squares panel data regression, fixed and random effects models, stationarity test, cross-section dependence test and the Hausman test are used for data diagnosis and analysis. Findings: The research has disclosed that CSR to society positively and significantly influences shareholders’ wealth while CSR to suppliers and lenders have non-significant positive effect on shareholders’ wealth. Contrastingly, it is further revealed that CSR to employees and tax authorities have significant negative effects on shareholders’ wealth while CSR to customers negatively and non-significantly influences shareholders’ wealth. Research, Practical & Social implications: The implication for managers is that CSR relationship with society is value enhancing in Nigeria’s industrial goods sector while CSR relationships with employees and tax authorities are value destroying. Value enhancing results of the dealings with suppliers and lenders and the value destroying result of the dealings with customers lack sufficient evidence. This research has helped in filling the gap in the existing literature and in serving as the basis for the economic and social development of Nigeria and other developing and developed countries of the world. Originality/value: This is the first time in the industrial goods sector that we are associating four new corporate social responsibility variables namely, CSR to suppliers, CSR to customers, CSR to tax authorities and CSR to lenders with shareholders’ wealth. This study encourages the revival of CSR to employees and CSR to tax authorities which are currently value destroying in the industrial goods sector of Nigeria.

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Section: Test Of Hypothesis Foursupporting

confidence: 91%

Section: Corporate Social Responsibility (Csr) To Customers and Econo...mentioning

confidence: 94%

Corporate Social Responsibility and Shareholders’ Wealth of Industrial Goods Producing Companies Listed on the Exchange Group PLC of Nigeria

Inyang,

Joel,

Obeten

et al. 2023

J. Professional Business Review

View full text Add to dashboard Cite

show abstract

“…Moreover, a number of studies claim that the dividend policy affects the value of the company (Mirna, 2020, Senata et al, 2016, Kim et al, 2020. The results of this investigation, however, are at odds with those of other studies (Risman, et al, 2020;Tamrin, et al, 2017;Anita and Yulianto, 2016;Oyeyemi and Emmanuel, 2019) that demonstrate that dividend policy has no bearing on firm value. According to research (Ivanov & Dolgui, 2020), debt policy positively and significantly affects a company's worth.…”

Section: Introductioncontrasting

confidence: 58%

The Influence of Dividend Policy and Profitability With Firm Size as a Moderating Variable

Sholikhah

2023

Economica

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The purpose of this study was to determine the effects of debt policy, profitability, and dividend policy on business value. Apart from ascertaining whether the magnitude of the corporation can enhance the influence of profitability, debt policy, and dividend policy on the value of the organization. Moderate regression analysis (MRA) was used as the research methodology in this study. In theory, this method works well for examining the effect variable following the addition of a moderating element. The addition of company size as a moderating variable, which is assumed to increase or diminish the relationship between dividend policy, profitability, and debt policy and firm value, is what makes this analysis new. 45 banking firms that are listed on the Indonesia Stock Exchange and engaged in the financial industry comprise the study's population. 10 banks make up the research sample. The study's conclusions show how corporation value is impacted by profitability and dividend policy. Next, the amount of the dividend policy mitigates its effect on business value. the business. Nonetheless, the size of the business has no bearing on how profitable a company is.

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“…The shareholders wealth maximization criterion proposed that managerial decisions in any organization should be centered on how to maximize the market value of the share or shareholders' wealth which is measured as market valuation (Khan & Hussanie, 2018). Market value is the stock exchange market share price as at the end of the financial year of all equity shares in issue (Ogundajo, Enyi, & Oyedokun, 2019).…”

Section: Review Of Conceptsmentioning

confidence: 99%

Risk Management and Shareholders’ Wealth Maximization

Ogundajo¹,

Adefisoye²,

Nwaobia³

2020

International Journal of Business, Economics and Management

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Risks are fundamentally part of business operational models; it cannot be completely eliminated and if not efficiently managed could result to loss of value. Wealth creation could only take place when the prevailing financial risks in the banking sectors are identified and carefully handled. An expost-facto study of 100 firm-year observations was conducted using ten listed Deposit Money banks in Nigeria for a period of 10 years from 2009 to 2018. The results of the multiple regression analysis carried out revealed that risk management significantly affected shareholders' wealth of listed banks. Credit risk (NPLR) and operating efficiency risk (OPER) had significant negative effect on Market Value (MV) while capital risk and liquidity ratio (LQR) had significant positive effect on market value (MV). This study concluded that four elements of risk (credit risk, capital risk, operating risk, liquidity risk) significantly affected shareholders' wealth of listed banks in Nigeria. Therefore, the management of the Nigerian banks should ensure that non-performing loan ratio to total loan is kept at its minimum; ensure adequate liquid fund in meeting customers demand as when needed, engage competent hands where deemed necessary in their operations to mitigate operating efficiency risk and possess adequate capital ratio in accordance with CBN minimum capitalization ratio, if possible, beyond the minimum required by the regulatory bodies. Contribution/Originality: This study is one of the few studies which have examined the four elements of risk associated with banking industry, as it affects the wealth of the shareholders. The four risk elements considered were credit risk, operating risk, capital risk and liquidity risk.

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Shareholders return and value of manufacturing firms listed on the Nigerian stock exchange

Cited by 4 publications

References 50 publications

Corporate Social Responsibility and Shareholders’ Wealth of Industrial Goods Producing Companies Listed on the Exchange Group PLC of Nigeria

Corporate Social Responsibility and Shareholders’ Wealth of Industrial Goods Producing Companies Listed on the Exchange Group PLC of Nigeria

The Influence of Dividend Policy and Profitability With Firm Size as a Moderating Variable

Risk Management and Shareholders’ Wealth Maximization

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