Ownership Structure and Financial Performance of Quoted Non
Financial Firms in Nigeria: An Independent and Joint Effect 
Analysis

Onuora; J. K. J. Ph.D; Obiora Fabian. Ph.D; Joshua Ngozi. G

Ownership Structure and Financial Performance of Quoted Non Financial Firms in Nigeria: An Independent and Joint Effect Analysis

Onuora, J. K. J. Ph.D, Obiora Fabian. Ph.D & Joshua Ngozi. G

Abstract

This study empirically investigated the relationship which exists between ownership structure and financial performance of quoted non financial firms in Nigeria. The study is vital as it portrays the extent to which ownership structure relates to financial performance of non- financial firms in Nigeria. In order to determine the relationship between ownership structure and financial performance, ownership structure was measured using institutional ownership, concentrated ownership, foreign ownership and block ownership while firms’ performance on the other hand was represented by return on equity (ROE). Four hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using OLS regression model operated with STATA V.15. Ex Post Facto design was adopted and data for the study were obtained from the published annual financial reports of the entire consumer goods firms quoted on Nigerian Exchange Group (NGX) with data spanning from 2012-2021. The findings of the study generally indicate that institutional ownership, concentrated ownership, foreign ownership and block ownership have significant and positive influence on firms’ performance measured by return on equity (ROE) at 1-5% significant level respectively. Thus, the study concludes that ownership structure ensures firms financial performance. The study however suggests the need for institutional ownership, concentrated ownership, foreign ownership and block ownership to be increased for better performance.

Keywords

Institutional Ownership; Concentrated Ownership; Foreign Ownership; Block Ownership; Return on Equity

References

Abosede, A., & kajola, S. (2011). Ownership structure and firms performance: Evidence from Nigerian listed companies. Corporate Ownership and Control, 8(4), 391-400 Adenikinju, O., & Ayorinde, F. (2001). Ownership structure, corporate governance and corporate performance: The case of Nigerian quoted companies. Paper presented at the AERC biannual research workshop, Nairobi-kenya. Alireza, F., Ali, T. H. & Kazem, M. (2011). An examination of effect of ownership structure on performance of listed firms in Tehran Stock Exchange. Journal of Business and Management, 6, 112-265 Bacha, S & Attia, T. (2016). Ownership structure, financial communication quality and debt cost: an empirical study of Tunisian listed companies. International Journal of Business and Financial Management Research, 4(6) 109-116. Daniel, S., Nuraddeen, U., Ahmad, A. (2021). Impact of ownership structure on financial performance of listed pharmaceutical firms in Nigeria. Journal of Conflict Resolution and Social Issues, 2(1), 69-88 Eriki, P. O. & Osagie, O. G. (2017). Capita) structure and bank's performance in Nigeria, Management Sciences Review, 5(1& 2), 7-22 Ibrahim, R. (2012).The effect of ownership structure on the financial performance of listed companies in Nigeria. Journal of Accounting and Finance, 5, 213-298. Ismail, A., & Ali, U. (2020). Ownership structure and financial performance of quoted financial firms in Nigeria. International Journal of Accounting Research, 5(4), 116-124 Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3, 305-360. Malik, S., & Okere, W. (2020). The relationship between corporate social responsibility, environmental investments and financial performance: Evidence from manufacturing companies. Environmental Science and Pollution Research 27(1) Ohiani, E., Eniola, S., Lateef, O. (2018). Effect of ownership structure on financial performance of listed insurance firms in Nigeria. Journal of Accounting, Finance and Auditing Studies, 4(3), 123-148 Okewale, A., Mustapha, A., & Aina, O. (2020). Ownership structure and financial performance of quoted food and beverage fims in Nigeria. KIU Journal of Social Sciences, 6(2), 263- 273 Omaliko, E., Nwadialor, E., & Nweze, A. (2020). Effect of non-financial disclosures on performance of non-financial firms in Nigeria, Journal of Accounting and Financial Management, 6(1), 16-39 Omaliko, E., & Okpala, N. (2020). Effect of financing mix on financial performance of health care firms in Nigeria. International Journal of Banking and Finance Research, 6(3), 63- 77 Reem, Allam, & Wajeeh (2015). The relation between ownership structure dimensions and corporate performance of quoted companies: Evidence from Bahrain. Australasian Accounting, Business, and Finance Journal, 9(3), 38-56. Sanda, A., Mikailu, A. S., & Garba, T. (2005) Corporate Governance Mechanisms and Financial Performance in Nigeria. Research paper 149. Africans Economic Consortium. Suleiman, M., & Nasamu, G. (2021). Ownership structure and financial performance of listed oil and gas companies in Nigeria. Journal of International Money, Banking and Finance, 2(1), 109-134 Usman, S., & Yero, J. (2012). Ownership concentration and earnings management practice of Nigerian listed conglomerates. American International Journal of Contemporary Research, 2 (7), 157-171. Yakubu, A., Danjuma, U., & Adejoh, O. (2019). Institutional ownership and financial performance of quoted building materials firms in Nigeria. International Journal of Research and Scientific Innovation, 6(5), 269-273

Ownership Structure and Financial Performance of Quoted Non Financial Firms in Nigeria: An Independent and Joint Effect Analysis

Abstract

Keywords

References

More Articles from IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH