Ownership structure and firm performance: Evidence from Nigerian listed companies

Author:

Abosede Adebiyi J.ORCID,Sunday Kajola OluwafemiORCID

Abstract

This paper examines the relationship between firms’ ownership structure and financial performance in Nigeria, using a sample of thirty listed companies between 2001 and 2008. Using pooled OLS as a method of estimation and after controlling for four firm-specific characteristics, our results show a negative and significant relationship between ownership structure (director shareholding) and firm financial performance (ROE). This is in support of Entrenchment hypothesis. Also, our study does not support a non-linear relationship between ownership structure and firm performance.

Publisher

Virtus Interpress

Subject

General Business, Management and Accounting

Reference50 articles.

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2. Akintoye, I.R (2008): “Effect of capital structure on firms’ performance: the Nigerian experience.” European Journal of Economics, Finance and Administrative Sciences, 10, pp 233- 243.

3. Barclay, M.J and Holderness, C.G (1989): “Private benefits from control of public corporations”. Journal of Financial Economics, 25(2), 371-395.

4. Berle, A.A and Means, G.C (1932): The Modern Corporation and Private Property. New York, Macmillan.

5. Bhattacharya, P.S and Graham, M.A (2009): “On institutional ownership and firm performance: a disaggregated view”. Journal of Multinational Financial Management, 19(5), pp 370-394.

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