Abstract
This study examines the relationship between ownership structure and the financial performance of listed firms in the financial sector of the Nigerian economy. To achieve the objective of this study, a total of 31 selected listed firms in the Nigerian stock exchange market were used. Also, the corporate annual reports for the period 2006-2010 were analyzed. This paper basically modeled the corporate ownership structure and firm performance relationship of the selected listed firms using the multivariate multiple regression analysis method to test the research propositions in this study. The study as part of it findings observed that observed that institutional ownership has a significant positive impact on the performance of the selected listed firms in Nigeria. In addition, the study also revealed that that there is a significant positive relationship between foreign ownership and the firm performance in Nigeria.
Highlights
Nigeria as a country has experienced turbulent times with regard to its corporate governance practices in the last two decades especially in the financial sector of the economy; this has invariably have resulted in a generally low corporate profits across the industry
This study basically investigates the relationship between ownership structure and the financial performance of listed firms in the financial sector of the Nigerian economy
This outcome for hypothesis (2) basically suggest that foreign ownership has positive effect on firm performance possibly due to the managerial efficiency and technical skills as well as the state of technology that foreign owners bring to their work environment
Summary
Nigeria as a country has experienced turbulent times with regard to its corporate governance practices in the last two decades especially in the financial sector of the economy; this has invariably have resulted in a generally low corporate profits across the industry. This picture is fairly well replicated globally in the same period. The failure of Enron Corporation, together with other high profile corporate collapses such as Adelphia, Health South, Tyco, Global Crossing, Parmalat, Hollinger, Adecco, TV Azteca, Royal Dutch Shell, WorldCom, among others has resulted in calls for better corporate governance (Lavelle, 2002; Clarke, Dean & Oliver 1998). The last section summarizes the main findings of the study with discussion of the conclusion
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