Abstract

<p>This study empirically investigated the relationship which exists between ownership structure and financial performance of quoted non-financial firms in Nigeria. The study is vital as it portrays the extent to which ownership structure relates to financial performance of nonfinancial firms in Nigeria. In order to determine the relationship between ownership structure and financial performance, ownership structure was measured using institutional ownership, concentrated ownership, foreign ownership and block ownership while firms’ performance on the other hand was represented by return on equity (ROE). Four hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using OLS regression model operated with STATA V.15. Ex Post Facto design was adopted and data for the study were obtained from the published annual financial reports of the entire consumer goods firms quoted on Nigerian Exchange Group (NGX) with data spanning from 2012-2021. The findings of the study generally indicate that institutional ownership, concentrated ownership, foreign ownership and block ownership have significant and positive influence on firms’ performance measured by return on equity (ROE) at 1-5% significant level respectively. Thus, the study concludes that ownership structure ensures firms financial performance. The study however suggests the need for institutional ownership, concentrated ownership, foreign ownership and block ownership to be increased for better performance.</p>