OWNERSHIP STRUCTURE AND FIRM PERFORMANCE

ABSTRACT

This study empirically estimated the relationship between ownership structure and financial performance of manufacturing firms in Nigeria. Six variables such as; Tobin Q, institutional ownership, board ownership, government ownership, foreign ownership and family ownership were used for the estimation. The data used ranges from 2010 to 2021 across 75 manufacturing firms in Nigeria. The study used the pooled panel regression technique for the empirical analysis. Specifically, the following findings were made: that block institutional ownership has a negative and not significant impact on the financial performance of manufacturing firms in Nigeria; that board ownership has a negative and significant impact on the performance of manufacturing firms in Nigeria; that block government ownership has a positive and not significant impact on the financial performance of manufacturing firms in Nigeria; that block foreign ownership has a positive and not significant impact on the financial performance of manufacturing firms in Nigeria; and that block family ownership has a negative and not significant impact on the financial performance of manufacturing firms in Nigeria.Following the findings from this study, we recommended among others that: institutions should be encouraged to invest in other institutions to create for increase their sources of fund; regulators should instill the principal of good corporate governance to reduce the agency problems in the manufacturing firms in Nigeria; and government should restrict it activities to governance and regulation. It should create an enabling environment for business to thrive.