Effect of Corporate Financing on Shareholder’s Value Maximization of Nigerian Pharmaceutical Sector

• Post by: deqe
• January 10, 2023
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ABSTRACT

This study examined effect of corporate financing on shareholder’s value maximization of Nigerian pharmaceutical sector. The study specifically examined effect of total debt, equity securities, trade payable and retained earnings on shareholders’ value in Nigerian pharmaceutical sector. The study made use of secondary data obtained from annual reports and accounts of five (5) sampled firms in Nigerian pharmaceutical firms.  The collected data were analysed using multiple regression analysis. Result of the analysis showed that total debt had positive and significant effect on shareholders’ value in Nigerian pharmaceutical sector. It was also observed that equity securities had positive and significant effect on shareholders’ value in Nigerian pharmaceutical sector. The study further showed that trade payable had positive and significant effect on shareholders’ value in Nigerian pharmaceutical sector. It was equally observed that retained earning’s had positive and significant effect on shareholders’ value in Nigerian pharmaceutical sector. Based on the findings, the study recommended that Managers and business owners should give proper attention to manpower requirement of their organization. It is imperative for management to constantly train her workforce and focus on maximizing the workforce skills required to perform task of various techniques capable of transforming the organization positively. Finally, investors are advised to among other things considered values such as equity issue securities, trade payables and retain earnings in their quest for investment.

Keywords: Corporate Financing; Shareholder’s Value Maximization; Nigerian Pharmaceutical Sector Survival Fund; Textile Survival Fund

Authorship
Ugwuene, R. N.; Okwo, M. I. & Ubesie, M. C.

DOI Link: https://doi.org/10.5281/zenodo.7553377 | FULL PDF