OWNERSHIP STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM NIGERIAN LISTED COMPANIES

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Adebiyi J. Abosede ORCID logo, Kajola Oluwafemi Sunday ORCID logo

https://doi.org/10.22495/cocv8i4c4art1

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.

Keywords: Ownership Structure, Agency Cost, Corporate Governance, ROE, Nigeria

How to cite this paper: Abosede, A. J., & Sunday, K. O. (2011). Ownership structure and firm performance: Evidence from Nigerian listed companies. Corporate Ownership & Control, 8(4-4), 391-400. https://doi.org/10.22495/cocv8i4c4art1