Ownership structure and firm performance: Evidence from nigerian listed companies
Corporate Ownership and Control
Department of Business Administration, Olabisi Onabanjo University, Ago-Iwoye, Nigeria; Department of Accounting, Banking and Finance, Olabisi Onabanjo University, Ago-Iwoye, Nigeria
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.