Title:
MODERATING ROLE OF EXECUTIVE COMPENSATION ON MANAGERIAL & CONCENTRATED OWNERSHIP AND MARKET VALUE OF LISTED CONSUMER AND INDUSTRIAL GOODS FIRMS IN NIGERIA

Authors:
Abalaka, Dorcas Eleojo, LAMBE, Isaac and AZA, Solomon Mamgba, Nigeria

Abstract:
The separation between ownership and control has been identified as the main cause of the agency problem, resulting in a disparity between the interests of the agents and those of the principals and this consequently, exert an effect on performance. Corporate governance mechanisms are the main ways of resolving the agency problem at all levels. Thus, this study examined managerial ownership, concentrated ownership and market value of listed consumer and industrial goods firms in Nigeria when moderated by executive compensation. To achieve these objectives, ex- post facto research design was employed with longitudinal panel. The population of the study cover all the twenty-one (21) listed consumer and 13 industrial goods firms on the Nigerian Exchange Group and a sample size of twenty six (26) listed consumer and industrial goods firms that had consistently published their audited annual financial reports from 2010 to 2024, and analyzed the data using panel multiple regression technique with the aid of E- view 13 statistical tools. The result of the study revealed that managerial ownership percentage had positive and significant effect on price to book value of listed consumer and industrial goods firms in Nigeria, likewise when moderated by executive compensation. Concentrated ownership percentage on the other hand, had positive but insignificant effect on price to book value, but when moderated with executive compensation, concentrated ownership percentage has a positive and significant effect on price to book value of listed consumer and industrial goods firms in Nigeria. The study, therefore, concludes that when managerial and concentrated ownership are moderated by executive compensation, it has a positive and significant effect on market value of listed consumer and industrial goods firms in Nigeria. Based on these findings, it is recommended that management of listed consumer and industrial goods firms should balance managerial ownership and concentrated ownership with executive compensation to maximize market value and protect the interests of all shareholders.