SHAREHOLDER VALUE CREATORS IN THE BUILDING MATERIALS SECTOR OF THE NIGERIAN STOCK EXCHANGE 2000-2009

Abstract

In this paper, shareholder value creators for the companies included in the Building Materials sector of the Nigerian Stock Exchange (NSE) in the period 2000-2009 was defined and quantified. The shareholder value created by each of the six active companies included in the Building Materials sector of the Nigerian Stock Exchange (NSE) was quantified for every year in the period 2000-2009. To achieve this objective, the annual reports and accounts of the relevant subject firms as well as the official reports from the Nigerian Stock Exchange and Central Bank of Nigeria were engaged to extract the data set for the study. The study discovered that Benue Cement Company Plc is the top shareholder value creator in the sector with N6.30 per share, followed by West African Portland Cement Company Plc with N4.23, Nigerian Wire Industries Plc with N3.27, Cement Company of Northern Nigeria Plc N11.05, and Ashaka Cement Company Plc N0.74 per share, while the Nigerian Ropes is a majorly shareholder value destroyer. It is also interesting to note that no year went by without the appearances of the shareholder value creators as well as the shareholder value destroyers.

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