Executive Compensation and Firm Value of Listed Conglomerate Firms in Nigeria
Despite the growing importance of executive compensation in enhancing corporate performance, many listed conglomerate firms in Nigeria continue to experience declining firm value, weak shareholder confidence, and ineffective incentive structures. This study examines the effect of executive compensation on the firm value of listed conglomerate firms in Nigeria over the period 2014 2023. The study adopts an ex post facto research design and utilizes panel data obtained from the annual reports of all six (6) conglomerates listed on the Nigerian Exchange Group, employing a census sampling technique. Executive compensation was proxied by cash incentives, non cash incentives, and stock based incentives, while firm value was measured using the market to book ratio. Data were analyzed using Fixed Effects panel regression Model. The findings reveal that non cash incentives have a positive and statistically significant effect on firm value, whereas cash incentives and stock based incentives exhibit no significant relationship with firm value. The study concludes that a well balanced compensation structure integrating both financial and non financial incentives is essential for improving firm value. It recommends that corporate boards and regulatory authorities such as Financial Reporting Council of Nigeria and Securities and Exchange Commission Nigeria should promote comprehensive executive compensation frameworks that emphasize long term value creation. Keywords: Cash incentives, non cash incentives, stock bonuses, firm value, executive compensation.
Keywords: cash incentives, non-cash incentives, stock bonuses, firm value, Nigerian.
Citation: Joseph, I., Bala, H., Abdullahi, M. & Daddau, H. (2026). Executive Compensation and Firm Value of Listed Conglomerate Firms in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 11(1), 104-114.