EFFECT OF SPECIFIC ATTRIBUTES ON SHAREHOLDERS' WEALTH OF LISTED MANUFACTURING COMPANIES IN NIGERIA

Abstract

This study investigates the effect of firm attributes on shareholders' wealth of listed manufacturing companies in Nigeria. The main objective was to determine how firm characteristics; profitability, leverage, liquidity, and audit fee affect shareholders' wealth. The research employed an ex post facto design, drawing on secondary data from audited annual reports and Nigerian Exchange Group (NGX) fact books covering the period 2013–2023. Drawing on panel data and applying robust Ordinary Least Squares (OLS) regression, the analysis revealed that leverage has a negative and statistically significant effect, suggesting that higher debt levels adversely influence the dependent variable. In contrast, audit factor and firm size exhibit positive and statistically significant relationships, implying that stronger audit-related attributes and larger organizational scale enhance the outcome variable. However, profitability and liquidity do not display statistically significant effects within the estimated model.These findings highlight that while firm attributes remain critical in shaping shareholder value, the role of investment decision as a moderator is not uniform but rather contingent on the specific attribute under consideration. Based on the findings, the study recommends that firms should adopt prudent leverage policies to mitigate the adverse effects of excessive debt financing. Emphasis should be placed on strengthening audit quality and governance mechanisms, given their positive contribution to the outcome variable. Additionally, managers may consider well-structured growth and scaling strategies, as firm size demonstrates a beneficial impact. These measures can enhance organizational stability, credibility, and overall performance. Policymakers and regulators may also encourage stronger audit frameworks and responsible financing practices to support corporate sustainability. The study contributes to knowledge by creatively expanding the empirical literature through sector-specific evidence, and innovatively suggesting that investment policies can both strengthen and weaken firm attribute–wealth relationships. The results further provide theoretical validation for agency theory, while underscoring the need for firm-level policy innovations in corporate governance.

Keywords: Specific Attributes, Investment Decision, Shareholders Wealth, Audit fee and Liquidity