The Impact Of Ownership Structure On Financial Performance Of Selected Quoted Manufacturing Companies In Nigeria
ABSTRACT
The main objective of our study was to determine the impact of ownership structure on financial performance of selected quoted manufacturing companies in Nigeria. This study used panel data regression to evaluate how managerial ownership, foreign ownership, controlling ownership and individual ownership affect financial performance (proxy by return on assets) of selected manufacturing companies quoted in the Nigerian Exchange Group as at 2024. The population size and sample size of this study was 10 manufacturing companies selected from both consumer goods and industrial goods sectors of the economy. Using ex-post facto research design and adopting static panel ordinary least square (OLS) estimation techniques, secondary data was gathered from the financial statements of the selected 10 manufacturing companies listed on the Nigerian Exchange Group (NXG) between 2019 and 2023. Findings from the study indicated that all the measures of ownership structure employed in this study (i.e managerial, foreign, controlling and individual) have positive and significant impact on the return on assets of the companies under study. It was then concluded that ownership structure has positive and significant impact on financial performance of quoted manufacturing companies in Nigeria. On the strength of this finding, one of the recommendations made in this study is that manufacturing companies should be encouraged to concentrate more on foreign ownership. This is because foreign investment will bring about expertise contributions as well as financial contributions which will ultimately enhance the overall performance of these companies.