An Empirical Examination of the Effect of Shareholder Value on Firm Performance in Nigeria
Authors: Egiyi, Modesta Amaka, Okafor, Victor Ikechukwu
Journal: Global Journal of Auditing and Finance (GJAF), ISSN 1694-4445
Citation: GJAF 4(1), 2022-03-18.
DOI: 10.70878/gjaf.2022.88d09594
PDF: Download full-text PDF
Type: Original Research
Abstract
This research work examined empirically the effect of shareholder value on firm performance. The first bank of Nigeria is used as a case study where data was obtained and subjected under empirical tests using the Ordinary Least Squares (OLS) regression method. Findings show that shareholder value has a significant effect on firm profitability and that shareholder value has no significant influence on financial efficiency. The study recommends that firms hire managers with not only a great marketing strategy, but one that also has good knowledge of the stock market and its operations, this is the only way to ensure a win-win situation between shareholders and other stakeholders.
Keywords
Firm Profitability, Firm Performance, Financial Efficiency, Stock Market Authorship Egiyi, Modesta A. PhD, and Okafor, Victor I. PhD | Full PDF
Full Text
This research work examined empirically the effect of shareholder value on firm performance. The first bank of Nigeria is used as a case study where data was obtained and subjected under empirical tests using the Ordinary Least Squares (OLS) regression method. Findings show that shareholder value has a significant effect on firm profitability and that shareholder value has no significant influence on financial efficiency. The study recommends that firms hire managers with not only a great marketing strategy, but one that also has good knowledge of the stock market and its operations, this is the only way to ensure a win-win situation between shareholders and other stakeholders.