DETERMINANTS OF SHAREHOLDERS’ VALUE CREATION OF LISTED BUILDING MATERIALS FIRMS IN NIGERIA

Abstract

This study focuses and aims at determining the shareholders’ value creation of listed Building Materials Firms in Nigeria Stock Exchange over the period of seven years 2007 to 2014. There were several studies that have been carried out in different part of the globe to support the shareholders’ value approach, gap have been established in the literature on the common method to be adopted in measuring shareholders’ value creation, this have resulted to considerable debate and controversy. The population of the study consist of all Building Materials firms listed in Nigeria Stock Exchange in the country as at December 31^st, 2013. The samples of the study are eight listed Building Materials Firms in Nigeria within the period of study. Ordinary least square method of estimation was employed in analysing the research data of the study. The results of the study reveal a significant positive relationship between dividend and shareholders’ value, a significant positive association between debt and shareholders’ value, a significant positive relationship between ROA and shareholders’ value but significant negative relationship between increase in growth and shareholders’ value. In line with the findings of the study, it is recommended among others that the regulatory authorities, SEC in particular should design a policy that will motivate building materials firms to be paying dividend to their shareholders on regular basis. This will increase the shareholders’ value due to the nature of relation between the variables which is positive. Also, the listed building materials firms should rely more on debt in financing their projects. This is because the higher the debt, the higher the shareholders’ value will be.