Title: Firm physiognomies and shareholder wealth maximization: evidence from listed agricultural firms in Nigeria
Authors: Theresa Nkechi Ofor, Ph.D. , Tochi Genervin Ibebuchi
Volume: 9
Issue: 12
Pages: 245-260
Publication Date: 2025/12/28
Abstract:
: This study investigated the effect of firm physiognomies on shareholder wealth maximization, with a focus on listed agricultural firms in Nigeria. Specifically, it examined how firm size, leverage, and liquidity influenced the market value added (MVA) ratio as a measure of shareholder wealth. The study adopted an ex-post facto research design, with the population consisting of all five agricultural firms listed on the Nigerian Exchange Group, selected through a census sampling technique. Data were collected from audited annual reports covering a ten-year period (2015-2024). Descriptive statistics, correlation analysis, and the Hausman test were employed, while fixed and random effect regression was used to test the hypotheses. The findings revealed that: firm size had a positive and significant effect on market value added ratio of listed agricultural firms in Nigeria (? = 0.341941, p = 0.0192); firm leverage had a negative and significant effect on market value added ratio of listed agricultural firms in Nigeria (? = -0.759967, p = 0.0194); firm liquidity had a negative and non-significant effect on market value added ratio of listed agricultural firms in Nigeria (? = -0.032605, p = 0.4743). The study concluded that firm physiognomies critically affect shareholder wealth maximization in listed agricultural firms in Nigeria, with larger firm size enhancing market confidence, excessive leverage constraining value creation, and liquidity contributing modestly to shareholder returns. Therefore, it was recommended that managers of listed agricultural firms in Nigeria should strategically expand firm size, optimize leverage levels, and strengthen liquidity management to maximize shareholder wealth.