ABSTRACT

The study investigated the impact of shareholders’ value creation on performance of the Nigeria banking industry. The study was carried out for the period 1997 to 2016 and multiple regression analysis was used for data analysis. Return on assets (ROA) was used to measure bank performance. Based on the results, it was found that shareholders’ value has a negative and significant impact on bank performance in Nigeria. Stock market ratio had a negative and in insignificant impact on bank performance while the impact of leverage ratio was found to be insignificant. Hence, the need to monitor overall banking operations, protecting the assets of the firm, and holding executive directors and managers accountable to the firms’ key stakeholders to ensure the survival, sustainability, and growth of Nigerian banks was recommended.

TABLE OF CONTENTS

Title page i

Dedication ii

Acknowledgements iii

Declaration iv

Certification v

Table of contents vi

Abstract ix

CHAPTER ONE

INTRODUCTION 1

1.1 Background to the Study 1

1.2 Statement of Research Problem 4

1.3 Objectives of the Study 5

1.4 Research Questions 5

1.5 Research hypotheses 6

1.6 Significance of the Study 6

1.7 Scope of the Study 7

1.8 Limitation of the study 7

1.9 Operational definition of terms 8

CHAPTER TWO

REVIEW OF RELATED LITERATURE 9

2.1 conceptual framework 9

2.1.1 Concept of value creation (VC) 10

2.1.2 Value creation and corporate restructuring 12

2.1.3 Rationale of banking sector restructuring in Nigeria 16

2.1.4 Determinants of value creation 17

2.1.5 The significance of value 18 

2.1.6 Profitability as a determinant of value creation 20

2.1.7 Dividend policy as a determinant of value creation 20

2.1.8 Financial policy as a determinant of value creation 21

2.2 Theoretical framework 23

2.2.1 The value-increasing theory 23

2.2.2 Consolidation models 25

2.3 Empirical literature 27

CHAPTER THREE

RESEARCH METHODOLOGY 34

3.1 Research Design 34

3.2 Area of study 34

3.3 Source of data collection 34

3.4 Method of data analysis 35

3.5 Model Specification 36

CHAPTER FOUR

PRESENTATION OF DATA, ANALYSIS AND DISCUSSION 38

4.1 Presentation of Data 38

4.2 Descriptive statistics 39

4.3 Presentation of results and discussion of findings 39

4.3.1 Regression analysis 39

4.3.2 Correlation analysis 41

4.3.3 Test of hypotheses 41

4.3.4 Discussion of findings 42

CHAPTER FIVE 

SUMMARY OF FINDINGS 43

5.1 Summary of Findings 43

5.2 Conclusion 43

5.3 Recommendations 43

References 45

Appendices 48