THE EFFECTIVENESS OF FINANCIAL REGULATIONS ON SHAREHOLDERS’ VALUE ON NIGERIAN STOCK MARKET: A CASE STUDY OF LISTED AGRICULTURAL RELATED COMPANIES

¹Tony Ikechukwu Nwanji, ²Kerry E. Howell, ³Dominic Z. Agba, ⁴Sunday O. Adewara, ⁵Adegbola Olubukola Otekunrin, ⁶Adedoyin Isola Lawal & ⁷Tobi E. Oladiran

  ^1,5,6,7Department of Accounting and Finance Landmark University, Nigeria

²Professor of Leadership and Governance and Director of Research

Plymouth Business School Plymouth University, United Kingdom

^3,4Department of Economics, Landmark University, Nigeria

Email: nwanji.tony@lmu.edu.ng /nkosa21@aol.com, kerry.e.howell@plymouth.ac.uk, agba.dominic@lmu.edu.ng, adewarna.Sunday@lmu.edu.ng, otekunrin.adedoyin@lmu.edu.ng, lawal.adedoyin@lmu.rdu.ng, oladiran.tobi@lmu.edu.ng

ABSTRACT

This study examined the effectiveness of financial regulations on shareholders’ value in the Nigeria Stock Market. Data was gathered from secondary sources. The secondary data source the annual reports of 10 Agricultural Related Companies. The results of the analysis show that there is a significant relationship between financial regulations and shareholders’ value. The secondary data were analysed through regression method using ordinary least square and Cochrane-Orcutt Autoregressive method to examine the effectiveness of financial regulations on shareholders’ value. The result shows that there is a relationship between financial regulations and shareholders’ value, but it is statistically insignificant. Also, the regression result shows that there is a correlation between financial reporting and shareholders’ value. The research recommends that Regulatory Agencies should ensure that financial regulations are targeted toward all the variables which affect the shareholders’ value.

Keywords:  Financial Regulation, Shareholder Value, Corporate Governance, Shareholder Theory, Stakeholder Theory, Stock Market, Agricultural Stocks.