MODERATING EFFECT OF ORGANISATIONAL CULTURE ON PROFITABILITY AND FIRM VALUE OF LISTED CEMENT MANUFACTURING COMPANIES IN NIGERIA

Abstract

This study examined the moderating effect of organisational culture on the relationship between profitability and firm value of listed cement manufacturing companies in Nigeria. Ex post facto research design with panel data was adopted for the study. The population consists of the only three (3) cement manufacturing firms listed on the Nigerian Exchange (NE) as at 2021. Purposive sampling technique was used in determining the sample size of the 3 quoted cement manufacturing firms in Nigeria for a period of 13 years (2009-2021). Secondary data was collected for this study and correlation coefficient and multiple regression analysis were used to analyse the data collected and this was computed with the aid of Stata13. Findings of the study revealed a positive and significant effect of profitability on firm value, a positive and significant effect of organisational culture on firm value and a positive moderating effect of organisational culture on the relationship between profitability and firm value of the listed cement manufacturing companies in Nigeria. Hence the study concluded that organisational culture significantly moderates the relationship between profitability and firm value. The study recommended adherence to diversity in board composition in such areas like gender diversity, expatriate mix, ethnicity and specialisation in order to increase owners’ wealth and increase the value of the firm