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Shareholders Value: The Debate through Corporate Governance Mechanisms Perspective

Author

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  • Egwakhe, A. J

    (Business Administration & Marketing Department, School of Management Sciences, Babcock University, Nigeria)

  • Momah, N. S

    (Finance Department, School of Management Sciences , Babcock University, Nigeria)

  • Akande, F. I

    (Finance Department, School of Management Sciences , Babcock University, Nigeria)

Abstract

Shareholders’ value reflects an efficient utilization of rare resources and ability to generate profits. However, Nigerian banks case is otherwise since shareholders’ value remain low and a concern for stakeholders, practitioners, policymakers, business tycoons, and researchers. This article investigates shareholders’ value debate through corporate governance mechanism lens within Nigerian deposit money institutions. Thirteen deposit money institutions were used and panel regression analyses were conducted. Results showed that corporate governance procedures significantly and favorably impacted shareholder return..(Adj. R2 = 0.1233, (F (4, 174) = 7.90, p 0.05).The paper recommends that board appointments should be experience-based, complex cognitive adaptability rather than affinity and activities should be shareholders’ value focused. Also, regulatory framework should be tightened, and supervisory capabilities improved towards ensuring a steady increase in shareholder value.

Suggested Citation

  • Egwakhe, A. J & Momah, N. S & Akande, F. I, 2023. "Shareholders Value: The Debate through Corporate Governance Mechanisms Perspective," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(6), pages 372-387, June.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:6:p:372-387
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    References listed on IDEAS

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    1. Abiola Kafidipe & Uwuigbe Uwalomwa & Olajide Dahunsi & Faith Ojone Okeme, 2021. "Corporate governance, risk management and financial performance of listed deposit money bank in Nigeria," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1888679-188, January.
    2. Ross, Stephen A, 1973. "The Economic Theory of Agency: The Principal's Problem," American Economic Review, American Economic Association, vol. 63(2), pages 134-139, May.
    3. Jens Matthias Arnold, 2008. "Do Tax Structures Affect Aggregate Economic Growth?: Empirical Evidence from a Panel of OECD Countries," OECD Economics Department Working Papers 643, OECD Publishing.
    4. Martin Kyere & Marcel Ausloos, 2021. "Corporate governance and firms financial performance in the United Kingdom," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1871-1885, April.
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