IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 9 2024
DOI: 10.56201/ijbfr.v10.no9.2024.pg106.124

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Corporate Restructuring and the Shareholders Wealth of Selected Firms in Nigeria

Dr. Ebi R. Odi and Dr. Greatness U. Oji

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Abstract

This study examines the effect of corporate restructuring on the shareholders wealth of selected firms in Nigeria. The objective is to know the existing and the direction to which components of corporate restructuring affect shareholders wealth. The needed data was sourced from stock exchange fact book and financial statement of the firms from 2000-2014. Profit after Tax (PAT) was modeled as the function of asset restructuring, ownership restructuring and business restructuring. Descriptive and multiple regressions with the aid of statistical package for social services (SPSS) were used as data analysis techniques. It was discovered in the study the independent variables have positive and significant effect on the profitability of the firms. It also found that the correlation coefficient is strong by 67.4%, R2 and adjusted R2 of 87.4%, 69.0% and the F-ratio 27.772. We conclude that corporate restructuring have significant effect on the shareholders wealth of the firms. It recommend that there should be well articulated policies to manage the corporate restructuring, the internal operating environment of the firms should be well structured, the objective of the management should be harmonized and integrated with the shareholders wealth maximization and the board should ensure corporate governance.

keywords:

Corporate Restructuring, Shareholders Wealth, Nigeria

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