Shareholders Value: The Debate through Corporate Governance Mechanisms Perspective

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), Nonetheless, a positive but negligible effect was observed for return on equity. (Adj. R2 = 0.0107, (F (4, 111) = 1.71, 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.