Ownership Structure and Investment Decisions of Listed Consumer Goods Firms in Nigeria

Abstract

The choice of investment is a critical decision every corporate organization is confronted with. This is because the outcome has the capacity to affect every aspect of an entity as a going concern. Ownership structure has been advanced as a control mechanism that determines the economic trajectory of a firm through its influence on the investment decisions made by firms. The study therefore empirically analyzed ownership structure dynamics on investment decisions of listed consumer goods firms in Nigeria. Data was garnered from the year end reports and accounts of the selected firms, validated by the relevant regulatory bodies. Inferential analysis via multiple regression was used as the mechanism for data examination. The findings revealed that ownership structure has significant effect on noncurrent assets to total assets ratio. (Adj R2 = 0.105; Wald Chi2 (4,173) = 8.79 P =0.03 < 0.05). The study consequently prescribes that Government, regulators and policy makers should synergize to strengthen the governance frameworks of firms which will translate to efficient monitoring and oversight as well as an appreciation in long term investment intensity. Keywords: Consumer goods firms, corporate organizations, investment decisions, noncurrent assets to total assets ratio, ownership structure