IIARD International Institute of Academic Research and Development

WORLD JOURNAL OF FINANCE AND INVESTMENT RESEARCH (WJFIR )

E-ISSN 2550-7125
P-ISSN 2682-5902
VOL. 8 NO. 3 2024
DOI: 10.56201/wjfir.v8.no3.2024.pg55.74

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Ownership Structure and Financial Performance of Listed Commercial Banks in Nigeria

Asuquo Mary Victor, Ukpeh, Gabriel Ita and Obialor, Donatus Chukwuemeka

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Abstract

The research examined the effect of concentrated ownership and dispersed ownership on the Return on Assets of commercial banks in Nigeria. The study adopted the explanatory and quantitative methods. Data was collected from a sample of 13 listed commercial banks covering a period spanning from 2018 to 2022. The data was analyzed using the panel random effects regression technique. The findings revealed that concentrated ownership structure has a significant negative effect on return on assets, while dispersed ownership structure has a positive and significant effect on return on assets. There was no strong evidence to show that a causality relationship exists between ownership structure and financial performance. It was concluded that commercial banks in Nigeria with dispersed ownership structures perform better than those with concentrated ownership structures. Recommendations made include the need for more banks to embrace less concentrated ownership, and the need for more regulations and policies from the Central Bank of Nigeria (CBN) to limit the negative effects of toxic ownership concentration.

keywords:

Concentrated ownership; dispersed ownership; Return on Assets, Commercial, Bank.

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