Moderating Role of Executive Compensation on Dispersed and Foreign Ownerships Effect on Market Value of Listed Consumer and Industrial Goods Firms in Nigeria

The market value of firms in Nigeria remains highly sensitive to corporate governance dynamics, particularly the structure of ownership and the incentives provided to executive management. This study examined the moderating role of executive compensation in the relationship between dispersed ownership and foreign ownership structures and the market value of listed consumer and industrial goods firms in Nigeria. The study population consists of twenty-one (21) listed consumer and thirteen (13) industrial goods firms on the Nigerian Exchange Group as of December 31, 2024. A purposive sampling technique was used to select twenty-six (26) firms with consistent disclosures over fifteen years (2010–2024). Employing a longitudinal panel research design, the study utilized panel least squares and panel EGLS (random effects) regression analysis through E-Views 13 software. The results revealed that dispersed ownership percentage has a positive and significant effect on price to book value, while foreign ownership percentage does not exert a statistically significant influence on price to book value. However, after their interaction with executive compensation, findings show that dispersed ownership has a positive and statistically significant effect on price to book value, while Foreign ownership has a negative but insignificant effect on the price to book value. The study concludes that executive compensation has a significant relationship with the moderating effect of dispersed ownership, but an insignificant effect on foreign ownership on the firm value of listed consumer and industrial goods firms in Nigeria. The study recommended that boards adopt performance-contingent compensation schemes and that regulatory bodies enforce greater disclosure of ownership-incentive alignments to improve market valuation and promote sustainable governance outcomes in Nigeria's consumer and industrial goods firms.

Executive Compensation, Dispersed Ownership

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