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Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector

Received: 4 August 2023     Accepted: 24 August 2023     Published: 13 March 2024
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Abstract

The desire of every shareholder is to see that shareholders’ wealth is given strategic central point attention far and above other priorities of the management. Prior studies have shown that meeting shareholders’ wealth expectations in Nigeria is complex and full of challenges considering the infrastructural deficits, security challenges and lack of corporate legitimacy capable of enhancing shareholders’ wealth in the country. In addition, effective sustainability performance has been advanced as capable of improving corporate performance and increasing shareholders’ wealth. In contributing to knowledge, this study looked at how corporate sustainability affected shareholders' wealth in Nigeria's national banking industry. Using an ex-post facto research design, the study employed secondary data extracted from selected financial institutions from banking institutions. A total of 15 financial institutions were chosen using a purposive sample technique during a 15-year period, from 2008 to 2022, from the population of 65 financial institutions listed in Nigeria. The certification by the external auditors served as the foundation for the data's dependability and authenticity. Inferential (multiple regression) analysis was employed using a pooled panel data analysis. The result showed that corporate sustainability exerted a significant effect on shareholders’ wealth (Adj. R2 = 0.7474, F-stat/Wald test (4, 220) = 18.30, p < 0.05). The study concluded that corporate sustainability had a positive and significant effect on shareholders’ wealth in the national financial sector in Nigeria. Consequent to the results, managers should ensure that effective corporate sustainability policies are instituted and practised in their companies.

Published in Journal of Finance and Accounting (Volume 12, Issue 1)
DOI 10.11648/j.jfa.20241201.12
Page(s) 12-21
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Corporate Sustainability, Corporate Governance, Environmental Practice, Financial Sector, Financial Institutions, Firm Size, Shareholders’ Wealth

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Cite This Article
  • APA Style

    Osunsusi, A. K., Adegbie, F. F., Anaekenwa, A. T. (2024). Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector. Journal of Finance and Accounting, 12(1), 12-21. https://doi.org/10.11648/j.jfa.20241201.12

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    ACS Style

    Osunsusi, A. K.; Adegbie, F. F.; Anaekenwa, A. T. Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector. J. Finance Account. 2024, 12(1), 12-21. doi: 10.11648/j.jfa.20241201.12

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    AMA Style

    Osunsusi AK, Adegbie FF, Anaekenwa AT. Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector. J Finance Account. 2024;12(1):12-21. doi: 10.11648/j.jfa.20241201.12

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  • @article{10.11648/j.jfa.20241201.12,
      author = {Akeem Kolawole Osunsusi and Festus Folajimi Adegbie and Aguguom Theophilus Anaekenwa},
      title = {Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector},
      journal = {Journal of Finance and Accounting},
      volume = {12},
      number = {1},
      pages = {12-21},
      doi = {10.11648/j.jfa.20241201.12},
      url = {https://doi.org/10.11648/j.jfa.20241201.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20241201.12},
      abstract = {The desire of every shareholder is to see that shareholders’ wealth is given strategic central point attention far and above other priorities of the management. Prior studies have shown that meeting shareholders’ wealth expectations in Nigeria is complex and full of challenges considering the infrastructural deficits, security challenges and lack of corporate legitimacy capable of enhancing shareholders’ wealth in the country. In addition, effective sustainability performance has been advanced as capable of improving corporate performance and increasing shareholders’ wealth. In contributing to knowledge, this study looked at how corporate sustainability affected shareholders' wealth in Nigeria's national banking industry. Using an ex-post facto research design, the study employed secondary data extracted from selected financial institutions from banking institutions. A total of 15 financial institutions were chosen using a purposive sample technique during a 15-year period, from 2008 to 2022, from the population of 65 financial institutions listed in Nigeria. The certification by the external auditors served as the foundation for the data's dependability and authenticity. Inferential (multiple regression) analysis was employed using a pooled panel data analysis. The result showed that corporate sustainability exerted a significant effect on shareholders’ wealth (Adj. R2 = 0.7474, F-stat/Wald test (4, 220) = 18.30, p < 0.05). The study concluded that corporate sustainability had a positive and significant effect on shareholders’ wealth in the national financial sector in Nigeria. Consequent to the results, managers should ensure that effective corporate sustainability policies are instituted and practised in their companies.
    },
     year = {2024}
    }
    

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  • TY  - JOUR
    T1  - Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector
    AU  - Akeem Kolawole Osunsusi
    AU  - Festus Folajimi Adegbie
    AU  - Aguguom Theophilus Anaekenwa
    Y1  - 2024/03/13
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    N1  - https://doi.org/10.11648/j.jfa.20241201.12
    DO  - 10.11648/j.jfa.20241201.12
    T2  - Journal of Finance and Accounting
    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
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    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20241201.12
    AB  - The desire of every shareholder is to see that shareholders’ wealth is given strategic central point attention far and above other priorities of the management. Prior studies have shown that meeting shareholders’ wealth expectations in Nigeria is complex and full of challenges considering the infrastructural deficits, security challenges and lack of corporate legitimacy capable of enhancing shareholders’ wealth in the country. In addition, effective sustainability performance has been advanced as capable of improving corporate performance and increasing shareholders’ wealth. In contributing to knowledge, this study looked at how corporate sustainability affected shareholders' wealth in Nigeria's national banking industry. Using an ex-post facto research design, the study employed secondary data extracted from selected financial institutions from banking institutions. A total of 15 financial institutions were chosen using a purposive sample technique during a 15-year period, from 2008 to 2022, from the population of 65 financial institutions listed in Nigeria. The certification by the external auditors served as the foundation for the data's dependability and authenticity. Inferential (multiple regression) analysis was employed using a pooled panel data analysis. The result showed that corporate sustainability exerted a significant effect on shareholders’ wealth (Adj. R2 = 0.7474, F-stat/Wald test (4, 220) = 18.30, p < 0.05). The study concluded that corporate sustainability had a positive and significant effect on shareholders’ wealth in the national financial sector in Nigeria. Consequent to the results, managers should ensure that effective corporate sustainability policies are instituted and practised in their companies.
    
    VL  - 12
    IS  - 1
    ER  - 

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Author Information
  • Department of Accounting, Babcock University, Ilishan-Remo, Nigeria

  • Department of Accounting, Babcock University, Ilishan-Remo, Nigeria

  • Department of Accounting and Finance, Augustine University, Ilara-Epe, Lagos State, Nigeria

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