IMPACT OF OWNERSHIP STRUCTURE ON FIRM PERFORMANCE: EVIDENCE FROM LISTED MANUFACTURING FIRMS IN NIGERIA

Abstract

Ownership structure of any company has been a serious agenda for corporate governance and that of performance of a firm. How ownership affect firm performance has been a topic investigated by researchers for many decades and the debate is still on-going. This article intends to contribute to the debate by examining the impact of share ownership in the Nigerian manufacturing sector. The research used the descriptive cross sectional survey design. Data was collected by secondary method. Ten firms were sampled for analysis using audited annual reports and accounts for eleven years covering 2005 to 2015. The fixed effect model of the regression analysis was found most suitable and employed in estimating the variables of the study. We found that there is no significant effect between the institutional and individual shareholders and the financial performance of manufacturing firms in Nigeria. We conclude based on the sampled firms that other factors rather than type of share ownership affect financial performance in Nigerian manufacturing sector. This can be attributed to the nature of shareholding in the manufacturing sector where ownership is mainly held by individual investors. Where firms are held by other firms, that firm's shareholding will not be widely dispersed. The government in its policy making function, should direct its searchlight on other areas rather than the type of shareholding in order to monitor and control the firms as a means of improving their financial performance.