Weighted Average Cost Of Capital Research Articles

Financial feasibility of business towards application-based business: a case study of Drykeun

Drykeun, an e-commerce startup established in 2022, focuses on the laundry industry in Indonesia. Drykeun aims to become the country's leading laundry service provider by utilizing technology, innovation, and exceptional customer service. Drykeun partners with existing laundries to ensure standardized quality control and deliver top-notch services to households and businesses across the nation. Its mission is to provide reliable, affordable, and high-quality services, making laundry day hassle-free for all people. However, facing low sales in the B2C sector, Drykeun plans to pivot to the B2B target market. To determine the viability of this shift, a feasibility analysis will be conducted. This quantitative study will utilize historical company data, as well as secondary data from literature reviews, journals, and books. The research will also assess the financial feasibility of the company's strategy using measures such as the payback period, net present value, and internal rate of return. The study results indicate that Drykeun is financially feasible with a payback period of 1.6 years, an NPV of Rp. 396,378,216, and an IRR of 82%, which is higher than the Weighted Average Cost of Capital (WACC) of 5.2%.

Quantification of Expected Return of Investment in Wood Processing Sectors in Slovakia

The study focuses on the selected aspects of investment measurement and management for the support of financial and economic decision-making of investors in wood-processing sectors. The aim of the study was to analyze the indicators for the structure and cost of capital of furniture and paper/forest branches in Slovakia, quantify the actual expected return on investment based on the selected methodology, and consequently find out the fundamental differences resulting from the specific conditions of given sectors. Methodologically, the study uses procedures for the weighted average cost of capital (WACC), capital asset pricing model (CAPM) for determining the cost of equity, and calculation of the beta coefficient considering the risk premium. The results of the study demonstrated a similar levered beta in both analyzed sectors (1.17 in furniture, 1.20 in paper/forest), but in each sector for a different reason. The expected rate of return is higher in furniture (7.84%) compared to paper/forest products at the level of 6.04%. The findings provide the possibility of comparing the required and expected rate of return on invested capital and making the appropriate long-term investment decisions.

Capital Budgeting Analysis of Broiler Farm Construction in Central Java

Indonesia, positioned as a prominent emerging market, draws its economic strength from a diverse mix of agriculture, manufacturing, and a thriving services sector. The nation’s strategic location, coupled with abundant resources and a youthful population, forms a resilient economic foundation that has contributed to its sustained growth. One notable sector that plays a pivotal role in meeting the country’s protein needs is the poultry industry. Chicken consumption has risen to 7.41 kilograms per capita yearly, indicating a substantial 9.23% increase from 2020. Against this backdrop of economic vibrancy and shifting consumption patterns, PT.XYZ, a key player in the poultry industry, is strategically positioning itself for expansion. Recognizing the immense potential within Indonesia’s dynamic poultry sector, PT.XYZ is planning to enhance its broiler meat production capabilities through the construction of new broiler chicken farm facilities. This research endeavours to provide PT.XYZ with a comprehensive feasibility analysis for the envisioned broiler chicken farm facilities. The proposed facilities are designed to produce a significant volume, with a capacity of up to 16.8 million chickens annually, equivalent to approximately 29,3 million kilograms of chicken meat per year. The construction timeline is strategically set for two years, spanning from September 2024 to October 2026. The research findings present a compelling case for the feasibility of PT.XYZ’s ambitious broiler farm construction project. Financial indicators reveal a positive Net Present Value, an Internal Rate of Return that exceeds the Weighted Average Cost of Capital (WACC), and a Payback Period of five years, aligning with the company’s strategic plans. These results underscore the financial viability and attractiveness of the proposed expansion.

A novel approach to calculate weighted average cost of capital (WACC) considering debt and firm's cash flow durations

AbstractThis paper presents a novel approach to calculate the weighted average cost of capital (WACC) but considering additional relevant variables to be applied to a specific cash flow, free cash flow to firm (FCFF), or capital cash flow (CCF), in order to value an asset. The analytical expressions deduced for this approach, one for each case, are based not only on the ratio debt to the value of the asset and the cost of debt and equity, as in the usual expression, but also includes the debt and firm's cash flow durations. The proposed novel approach to cost of capital has key advantages in comparison to the usual expression for WACC: It is an analytical expression that could be applied to whatever kind of debt or capital structure, not only perpetual debt or permanent capital structure. It is a single discount rate, and for its calculation, it is not necessary to recalculate financial factors involved, which makes easier its application. The additional financial variables involved, debt and firm's cash flow duration, allow to obtain better results for the right discount rate and for the value of an asset in the sense that the discount rate for the asset effectively will permit to reach the required level for the profitability for the investor and to cover the cost of debt.

Loblaw Companies Limiteds Basic Financial Analysis and Calculation Display

For a company, financial analysis can help the company analyze its financing, investment, risk management, comparison with competitors and other issues to help company decision-makers make correct decisions. For the financial market, financial analysis can help investors understand the basic characteristics, current situation and future prospects of their target investment companies and help improve social and economic stability and development. This article is mainly based on a financial analysis of the current state of Loblaw Companies Limited (hereinafter referred to as Loblaw) in 2023. The research purpose of this article is to conduct an in-depth study of Loblaw by explaining the meaning and conceptual relationship of data collection, calculations and results, so that the public can have a more comprehensive understanding of the companys financial status in 2023. This paper uses literature analysis and data analysis research methods to mainly explore Loblaws risks, financing costs, current capital plans and capital structure. The data analysis models used include linear regression model, dividend discount model (DDM), capital asset pricing model (CAPM), weighted average cost of capital (WACC), net present value model (NPV). The data used for calculation comes from authoritative websites such as Yahoo Finance, Bank of Canada, and Loblaws official website. The results of the study found that Loblaw has a dominant position in the Canadian retail market. Loblaw is one company that relies more on debt financing. Its financing costs are lower than the industry average. Its capital structure has been very stable in recent years. The market has full confidence in Loblaw.

Research on Capital Structure and Investment Value of Supermarket Industry

This paper focuses on researching the capital structure and investment value of the supermarket industry, specifically examining the impact of epidemiological events on value investment within this sector. The objective is to explore the factors that influence capital structure decisions and their implications for investment value. The analysis employs the Weighted Average Cost of Capital (WACC) method to evaluate the relationship between capital structure and investment performance in the context of the supermarket industry. The study aims to investigate the influence of epidemiological events, such as COVID-19, on the capital structure decisions of supermarket companies and their subsequent effects on investment value. The research considers factors such as the size and maturity of the companies, risk profiles, regulatory environments, and cost of capital considerations to assess their impact on capital structure choices. By utilizing the WACC method, A study of supermarket investment value and capital structure decisions is presented in this paper. The WACC approach allows for a comprehensive evaluation of the cost of debt and equity financing, incorporating factors such as interest rates, tax implications, and market conditions.

Research on Capital Structure and Investment Value of the Healthcare Industry

This paper makes an in-depth study of the US healthcare industry from both empirical and theoretical aspects of capital structure and investment value. By calculating the WACC (weighted average cost of capital) for three of the most representative public companies in the US healthcare industry (Johnson & Johnson, Pfizer, and UnitedHealth Group) and reviewing the literature, it is concluded that the company's business and capital flows have been affected due to the impact of the COVID-19 pandemic. At the same time, due to some differences in the main business and nature of the three companies, United Health Group found that it has the highest investment risk. Based on the analysis of the investment value and investment risk of Johnson & Johnson, Pfizer, and UnitedHealth Group, this paper provides more appropriate investment recommendations for investors with different preferences, to further understand the future development trend of the American medical industry.

Analysis of Four Capital Structure Theories and Financing Choice of Chinese-Listed Companies

Controlling the capital structure is crucial to the financial management of the business. Maximizing the company's worth requires finding the appropriate capital structure. In this study, the relationship between corporate capital structure and corporate value is further investigated using the weighted average cost of capital (WACC) and capital asset pricing model (CAPM) analyses of four capital structure theories, including M&Ms First and Second Theories, the Trade-off Theory and the Pecking Order Theory, which examine the reasons why listed businesses' financing sequence conflicts with western thinking and point out its uniqueness and policy recommendations based on the current situation of China's stock market.

Storm hardening and insuring energy systems in typhoon-prone regions: A techno-economic analysis of hybrid renewable energy systems in the Philippines’ Busuanga island cluster

Hybrid renewable energy systems (HRES) have emerged as a promising solution for delivering sustainable energy to off-grid communities. However, the vulnerability of specific regions to extreme weather events has raised concerns about the resilience of these systems. This study undertakes a techno-economic analysis to assess the impact and significance of incorporating storm hardening measures and insurance into an HRES designed for the Busuanga island cluster. Central to our study is introducing a novel cost metric, the probability-averaged levelized cost of electricity (LCOE), which adeptly captures the inherently probabilistic nature of climate-induced damages to HRES energy assets. This metric serves as the linchpin for comparing the economic viability of HRES configurations, considering both scenarios with and without storm hardening or insurance. Our findings unveil a clear trend: for a solar photovoltaic (PV) panel with an annual probability of damage at 1%, insurance emerges as a financially prudent choice, while storm hardening gains merit at a probability of 4%. The weighted average cost of capital (WACC) is pivotal in shaping investment decisions. HRES setups featuring non-hardened solar PV panels become more economically appealing than their insured or hardened counterparts under higher WACC conditions, under the condition that the solar PV panels can maintain functionality for 15 years without impairment. Our study demonstrates the importance of accounting for often overlooked factors such as storm hardening and insurance premiums for solar PV panels in climate-vulnerable areas, which are commonly disregarded in many techno-economic studies. Moreover, our findings and conclusions on the optimal balance between capital costs, insurance premiums, and storm-hardening markups can readily extend to other climate-vulnerable areas.

Leverage and the cost of capital for U.S. banks

We examine the relationship between leverage (the assets-to-equity ratio) and the weighted-average cost of capital (WACC) for an unbalanced panel of U.S. bank holding companies (BHCs) over the period spanning 1996 through 2019. We assess the extent to which changes in capital requirements affect the WACCs of these institutions and find significant differences across three, mutually exclusive asset-size classes of BHCs. In particular, the WACCs of small and medium-sized BHCs are found to be more sensitive to changes in capital requirements than the WACCs of large BHCs. For a hypothetical doubling of Tier-1 capital, we find that the largest BHCs saw their WACCs increase by 42 basis points, while the WACCS of small and medium-sized BHCs are estimated to have increased by 62 and 76 basis points, respectively. We attribute differences between these results to differences in the strength and scope of government guarantees and in the composition of BHCs’ assets and liabilities as reported on their balance sheets.

Tax Shields, the Weighted Average Cost of Capital, and the Appropriate Discount Rate for a Project with a Finite Useful Life

The standard formulas for calculating the value of a firm’s tax shield and its weighted average cost of capital (WACC) use the assumption that the underlying cash flows are perpetuities. Yet, most projects will have a finite useful life. Because the perpetuity approach will overstate the value of a finite-life project’s tax shield, this factor will pressure the perpetuity-formula WACC to be less than the finite-life WACC. However, a large portion of the value of a perpetual tax shield can be attributed to interest payments during the next 5, 10, or 25 years, making it possible for the perpetuity-formula WACC to be greater than the finite-life WACC. Using a series of numerical examples, this paper shows that the finite-life WACC can be either higher or lower than the perpetuity-formula WACC depending on the project’s useful life, the required return on the unlevered project, the firm’s capital structure, the cost of debt, the marginal tax rate, and the debt repayment pattern (e.g., coupon bonds or amortizing loans). The analysis in this article helps managers better understand the potential biases introduced into the capital budgeting process when using the perpetuity-formula WACC to evaluate projects with finite useful lives.

Aplikasi wedding planner dan analisis kelayakan guna meningkatkan income generating badan pengelola usaha Universitas Jambi

<span>Universitas Jambi as a State University with the status of a Public Service Entity (BLU) has two sources of income generating, namely those from academic services and non-academic services (academic support services). The implementation of academic support services is entrusted to the Business Management Agency (Badan Pengelola Usaha). BPU is tasked with carrying out the development of business units and optimizing the acquisition of university funding sources. Based on this task, BPU established the Weddy Feast business unit under the Commercialization and Services department. This research analyzes the business feasibility of wedding planner to increase income generating of the Business Management Agency. The conduct interviews and surveys some vendors in 43 types of business. The results show that the establishment of Weddy Feast able to optimize the potential of university assets involving 43 types of businesses and 15 of them can be managed by students in creating student entrepreneurs in the context of implementing Merdeka Belajar Kampus Merdeka (MBKM) program of the Ministry of Education, Culture, Research and Technology, which is strengthened by realizing the UNJA Smart platform with digital transformation elements in the real business world, in the form of making a weddy feast application. The Net Present Velue (NPV) of wedddy planner is positive, Rp.577.049.066,- and Internal Rate of Return (IRR) 156,12% hingher than weighted average cost of capital (WACC) 12%.</span>

Price Identification And Financial Feasibility Study of Hydroponic Agriculture Iot Solution Launch Project at PT XYZ

Since 2015, the Internet of Things technology has grown significantly, reaching over 400 million users by 2022 in Indonesia. Recognizing the potential, PT XYZ, an innovative Indonesian telecommunications company, intends to launch an IoT solution for hydroponic agriculture. The launch project requires an initial investment of around Rp 500 million. Given that amount, PT XYZ aims to determine the selling price using a value-based pricing strategy and assess the project's financial feasibility and risks before proceeding. Primary and secondary data will be utilized in this research to determine the customer's willingness to pay (WTP), Capital budgeting cash flow, which includes the hypothetical price of IoT, calculating the weighted average cost of capital (WACC), free cash flow to the firm (FCFF), and terminal value. The study used various capital budgeting techniques, such as net present value (NPV), profitability index, payback period, internal rate of return (IRR), and Excel's goal seek feature, to determine the IoT solution's pricing. A risk analysis using sensitivity and Monte Carlo simulations have conducted. The research finds that the present value of benefits, or WTP, for the IoT solution, is Rp 90,708,238. Considering PT XYZ's targeted internal rate of return of 20%, the determined selling price is Rp 20,120,408, which lies within the customer's WTP, making the project feasible. Capital budgeting techniques show a payback period of 4.08 years, an NPV of Rp 3,424,935,505, and a profitability index of 8.21 over five years, indicating positive outcomes. However, the sensitivity analysis reveals that a change in product price, cost of goods sold, and salary expenses will significantly impact the NPV, resulting in a 12.69% risk, with profitability remaining high at 87.31%. In conclusion, PT XYZ's hydroponic agriculture IoT solution launch project is considered feasible, considering potential risks and mitigation strategies.

Free Cash Flow and Market Value of Firm: The Mediation Effect of weighted average cost of Capital

Abstract
 This study tests the effect of capital costs on the relationship between free cash flow (FCF) and market value. The study selected twenty-six corporations that were listed on the Jordan securities market from 2010 to 2019. The FCF is an independent variable, cost of capital is a mediation variable (proxy of WACC), and market value added (proxy of firm’s value) is a dependent variable. Baron & Kenny's methodology and the Sobel-test were used to analyze the data of the four hypotheses, including the mediation effect of capital costs on FFC & MVA. Based on the Sobel test results, there is a partial mediation effect of the cost of capital between the free cash flow and the market value added of the firm, and the free cash flow is positively related to the market value added. Therefore, FCF has the capability to send positive signals to financial market participants about the firm's performance.
 Keywords: - Free Cash Flow (FCF), Weighted Average Cost of Capital (WACC), Market Value Added (MVA), Mmarket Value of Equity (MVE), Capital Asset Pricing Model (CAPM), Beta Coefficient (β). 

Optimal Capital Structure Analysis of PT Kencana Energi Lestari Tbk

In 2020, fossil fuels accounted for around 80% of the world's energy supply, but the 2022 global energy crisis highlighted their vulnerability and lack of sustainability, prompting a global shift towards renewable energy sources. Indonesia, recognizing its potential in renewable energy, has taken proactive steps to accelerate its transition, such as the issuance of Peraturan Presiden Nomor 112 Tahun 2022 to facilitate renewable energy development. PT Kencana Energi Lestari Tbk responded positively to the regulation and has allocated USD 30 million in 2023 to implement renewable energy strategies. They are also pursuing a USD 100 million renewable energy project in the Philippines. To fund its initiatives, PT Kencana Energi Lestari Tbk plans to use USD 9 million from internal cash reserves and obtain an additional USD 121 million from external financing sources. However, their current capital structure has a debt-to-equity ratio of 76.84%, which deviates significantly from the industry average of 35.92%, suggesting that it may not be optimal. This study employs the Weighted Average Cost of Capital (WACC) method to identify the most optimal capital structure that will maximize the company's value. The suggested capital structure consists of 34% debt and 66% equity, resulting in an optimal cost of capital of 12.2868%. To implement their renewable energy plan, PT Kencana Energi Lestari Tbk needs to secure a total funding of USD 23,947,572.54 through debt financing and USD 97,052,427.46 through equity financing.
 Keywords: optimal capital structure; renewable energy; financing plan

Determination of the Weighted Average Cost of Capital (WACC) applied to a COOPAC of Lima Cercado

In a context characterized by continuous changes, in which political instability is coupled with the damage caused by cyclone Yaku and the consequences of heavy rainfall that affected large areas of the northern coast of our country during the first three months of 2023. In addition, the actions taken by the Superintendence of Banking, Insurance and AFP against certain Savings and Credit Cooperatives, due to the negative balances in their equity accounts, have caused a high level of uncertainty and distrust towards the management carried out by the Peruvian cooperative system. This is due to the fragility of their financial structures, both for those involved internally and externally. Therefore, the main objective of this study was to determine the Weighted Average Cost of Capital in the financial decision making of a savings and credit cooperative in Lima Cercado. To achieve this, a descriptive study was carried out that addressed the fundamental concepts and appropriate techniques, based on a theoretical review of the evolution of corporate finance, considered a novelty in today's business.

Investment Project Analysis of a Medium Range (MR) Tanker Ships Purchase in an Attempt to Maintain the Economic Productivity of the Company (Case Study: PT XYZ)

PT. XYZ is a spin-off charter out business of its host company that specifically focuses on providing charter out services in the shipping industry. This research was carried out in response to the requirement to rejuvenate the vessels owned by PT XYZ taking into consideration the age of the ships. In total, there will be 7 ships that was used as an object of this research, considering the replacement program options of either acquiring newbuild vessels or secondhand ships. Newbuild Ship investment will use a 9.09% hurdle rate, including the weighted average cost of capital (WACC) of 7.09% and a risk premium of 2% in the analysis. This hurdle rate will be used as comparative data to the required rate of return for the related project (IRR>Hurdle Rate). There is a total of 2 ship in the overall project that will be replaced with a newbuild ship, Project 1 and Project 2. These investment projects will be conducted from 2024-2026 period. The capital structure for newbuild projects consisted of 75% debt and 25% equity. Secondhand ship investment will use an 9.59% hurdle rate, including the weighted average cost of capital (WACC) of 7.09% and a risk premium of 2.5% in the analysis. There is a total of 5 ships in the overall project that will be replaced with secondhand ship, Project 3-7. These investment projects will be conducted from 2024-2026 period. The capital structure for secondhand projects consisted of 75% debt and 25% equity. Based on the financial assessments of the projects, the findings consistently demonstrate positive results. As a result, it can be inferred that the seven projects are both viable and feasible to undertake. The primary objective is to guarantee that these projects make a positive contribution to the company’s economic productivity.

A Financial Feasibility Study to Determine the Best Funding Structure for a Total Renovation Project of the Karebosi Field in Makassar

The objective of this study is to determine the best debt-equity combination to fund the Public-Private Partnership (PPP) project applying the Build-Operate-Transfer (B-O-T) scheme for the total renovation of Karebosi Field in Makassar City, Indonesia. To assess the feasibility of the project, the financial feasibility study methodology is conducted. The study covers an analysis of both external and internal analysis. The external analysis covers the analysis of macroeconomic factors and microeconomic factors utilizing the PESTEL and Porter’s Five Forces framework. The internal analysis is focused on the resources of the project. The SWOT analysis presents the outcomes of both external and internal factors. In addition, the author presents three funding structure scenarios as potential alternatives to fund the project. The funding scenarios consist of three alternatives: scenario 1 of full equity funding, scenario 2 of hybrid funding with a proportion of 50% debt and 50% equity, lastly, scenario 3 of hybrid funding with a proportion of 70% debt and 30% equity. Along with that, the author also considers the operational occupancy scenarios that include worst-case, base-case, and best-case scenarios. The percentages of each of the three scenarios are 40%, 60%, and 80%. Following that, the financial projections are calculated for each scenario, resulting in investment measurements such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. Finally, a risk analysis is performed to assess the sensitivity of the best funding structure and to identify potential risks. Additionally, the evaluation of risk mitigation is added to enhance the overall effectiveness of the best funding structure. The findings indicate that the project is feasible, and scenario 3 of hybrid funding with the combination of 70% debt and 30% equity is the best funding structure for the project. In addition, the author performs a sensitivity analysis on the best funding scenario, considering ten input variables. Furthermore, the sensitivity analysis indicates that five variables, namely WACC, assumption of operational occupancy per day, interest rate, soccer field rental rate, and the ratio of operating expenses to revenue, significantly impact the net present value (NPV). Strategies to reduce potential risks are effective marketing and operations, managing occupancy rate volatility using backup strategies, developing new revenue streams, and negotiating long-term rate fixes with lenders. Therefore, future research can explore the dynamic nature of the external factors that influence the Internal Rate of Return (IRR), Net Present Value (NPV), Payback Period, and Weighted Average Cost of Capital (WACC). Determining the best funding may require ongoing research to assess the effects of market conditions, interest rate fluctuations, and industry-specific factors. Furthermore, explore how input variables like WACC, operational occupancy per day, interest rate, soccer field rental rate, and operating expense ratio to revenue affect NPV.

The Impact of Integrated Reporting on the Cost of Capital: Evidence from an Emerging Market

The aim of this study is to investigate the influence of integrated reporting (IR) on the cost of financing within the Turkish capital market. Specifically, we analyze the effects of IR on the weighted average cost of capital (WACC), cost of equity (COE), and cost of debt (COD) for companies listed on Borsa Istanbul. Additionally, we explore how IR moderates the relationship between environmental, social, and governance (ESG) scores and the cost of financing. Our panel data analysis reveals a positive association between IR and both WACC and COD, while the impact on COE is not statistically significant. However, the findings suggest that the utilization of IR by companies to enhance the communication of their value-creating activities can mitigate WACC and COD, thus indicating a moderating effect on the relationship between ESG factors and the cost of financing.

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

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.