Determinant of value creation and appropriation by bank: Stakeholders' theory perspective

Determinant of value creation and appropriation by bank: Stakeholders' theory perspective

Author by Dr. Tunji Siyanbola

Journal/Publisher: Journal Of Economics And International Business Research

Volume/Edition: 3

Language: English

Pages: 8 - 21

Abstract

This study, determinants of value creation and appropriation by bank, was conducted to
determine the variants of stakeholders that affect the way the organisation behave and
deplore the analysis of banks to capture all of them, rather than confining the analysis
towards satisfying only the shareholders. Five theories were reviewed and the existing
productivity model developed by Harberger in 1999 was regressed on data obtainable on
eight major stakeholders to confirm the apriori expectation that a direct relationship is expected of both
value creation and value appropriation. The study revealed that out of all the independent variables,
management executive wages (eE), have the greatest impact on Total Cash created by financial institutions
in Nigeria. It is therefore recommended that monetary authorities must revisit the guidelines on the
operation of deposit money banks in Nigeria with a view to reducing cost, most especially salary of
management executive, thereby increasing total value creation by the banks
 


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