Ownership Structure and Financial Performance of Quoted Financial Firms in Nigeria

This study is aimed at examining the effect of ownership structure on the financial performance of quoted financial firms in Nigeria. Data were collected from the financial statements of 38 financial firms quoted in the Nigerian Stock Exchange (NSE) for the periods of 2010 to 2019. The technique employed by the study was ex-post facto to examine the ownership structure effect on financial performance of financial firms quoted in NSE. The study used descriptive statistics, correlation, and multiple regression method through panel data method for model estimation. The data collected were subjected to pooled General Least Square, Random and Fixed Effects regression model in testing the hypotheses of the study. In this study, ownership structure is represented by institutional ownership, managerial ownership, and ownership concentration as independent variables. Firms’ financial performance as the dependent variables was represented by book value per Share. This study found that ownership structure has positive significant effect on financial performance of the quoted financial firms except ownership concentration having negative effect. However, with regards to size and firms’ growth, which constitute control variables of the study, mixed evidence of their effects was identified on financial performance. This study thus, recommends that in order to improve the financial performance, financial firms in Nigeria should enlarge managerial equity ownership of the firms. This can induce the executive managers to maximize their performance and provide more financial benefits to stakeholders.