Title: Firm Size: A Strategic Booster Of Shareholder Wealth Maximisation Among Listed Agricultural Firms In Nigeria
Authors: Chigbo Chinyere Frances, Gilbert Ogechukwu Nworie
Volume: 9
Issue: 4
Pages: 47-57
Publication Date: 2025/04/28
Abstract:
: Many agricultural firms in Nigeria find it difficult translating their size into tangible shareholder benefits, and this undermines investor confidence and hampers the sector's ability to attract long-term investment. This study, therefore, examined the effect of firm size on the shareholder wealth maximisation (proxy by share price return) among listed agricultural firms in Nigeria. Ex-post facto research design was adopted on a population comprising five listed agricultural firms in Nigeria. Census sampling was used in selecting all the population items into the sample. Secondary data for the study were sourced from the firms' annual reports over a ten year period (2014-2023). The hypothesis was tested using panel estimated generalised least square regression, which revealed that firm size has a positive and significant effect on shareholder wealth maximisation among listed agricultural firms in Nigeria (? = 18.26749; p = 0.0028). In conclusion, as firm size emerges as a significant driver of shareholder returns, it reflects a structural environment where economies of scale, access to finance, and operational capacity are critical to maximizing wealth. The study recommends that managers of listed agricultural firms in Nigeria should pursue strategic asset expansion initiatives, as increased firm size significantly enhances shareholder wealth through higher share price returns.