Shareholder Value Creators in the Agricultural/Agro-Allied Sector of the Nigerian Stock Exchange 2000-2009

Abstract

In this paper, shareholder value creators for the companies included in the Agricultural/Agro-allied sector of the Nigerian Stock Exchange (NSE) in the period 2000-2009 was defined and quantified. The shareholder value created by each of the five active companies included in the Agricultural/Agro-allied sector of the Nigerian Stock Exchange (NSE) was quantified for every year in the period 2000-2009. The study discovered that Okomu Oil Palm is the top shareholder value creator in the sector with N41.72 per share, followed by Afprint with N20.83, Okitipupa with N20.13, Presco N11.05, and Livestock N1.21 per share. It is also interesting to note that all the stocks created value in 2007while all destroyed value in 2001, 2002, and 2009. Other years had varied degrees of value creators and value destroyers.

Keywords: shareholder value creation, shareholder value added, shareholder actual return, shareholder required return to equity, Equity market value.