Research Article

IMPACT OF OWNERSHIP STRUCTURE ON FIRM PERFORMANC OF DEPOSIT MONEY BANKS IN NIGERIA

Bukar Amos1*, GEMU Aliyu Audu2, Abdullahi, Fatima Mahadi3, Dije Muhammad Suleiman4
1 Department of Accounting Ahmadu Bello University Zaria
2 Department of Accounting, Ahmadu Bello University, Zaria Kaduna State, Nigeria
3 Department of Business Administration Ahmadu Bello University, Zaria
4 Department of Accounting Bayero University Kano
* Corresponding author: amosbukar@yahoo.com
Published: Jun, 2015
Pages: 15-32
Views: 28
Downloads: 12

Abstract

This study focused on the impact of ownership structure and firm performance: evidence of money deposit banks in Nigerian capital market. There are many studies that have been conducted on the impact of ownership structure and firm performance: evidence of money deposit banks, but most of the studies are largely foreign base, therefore they are not conclusive and could not provide adequate evidence on the performance of listed banks in Nigeria. The firm characteristics are not similar to those of developing economy like Nigeria, thereby, proposes the need to conduct studies based on the nature of a developing economy like Nigeria. At the moment, we are not aware of any study on the impact of ownership structure and firm performance: evidence of money deposit banks in Nigeria lack of enough study on the area have clearly showed a gap and that gap needs to be filled within the literature. The objective of this paper is to examine the impact of ownership structure and firm performance: evidence of money deposit banks in Nigeria capital market. Agency Theory will be used to underpin the work. The population of the study is twenty listed Banks in the Nigeria stock exchange as at 31st Dec. 2014. The samples of the study are nineteen banks using the criteria of banks that there data are available during the period of the study. The result revealed that the entire variables are significant. The studies therefore, conclude that institutional ownership has significant impact on performance of listed banks in Nigeria and recommend among others: The regulatory authority such as NDIC and CBN should make it mandatory for banks to have institutional ownership stake in the banks in order to have better monitoring. To enhance the performance of the banks NDIC and CBN and the firms’ shareholders should make sure that banks disclose their report promptly and the external auditors should be mandated to report on the performance of the banks’ audit. Institutional shareholders should be discouraged by the regulatory authority from acting like a transient trader by investing in short-term rather than investing in long-term. Regulatory authority should make sure that listed banks operating in Nigeria should comply by submitting their financial statement regularly on time schedule.

Keywords

Banks size Institutional Shareholding Return on Assets and Return on Equity

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How to Cite

Amos, B., Audu, G. A., Mahadi, A. F., & Suleiman, D. M. (2015). IMPACT OF OWNERSHIP STRUCTURE ON FIRM PERFORMANC OF DEPOSIT MONEY BANKS IN NIGERIA. Nigerian Journal of Accounting Research, 11(1), 15-32.

B. Amos, G. A. Audu, A. F. Mahadi, and D. M. Suleiman, "IMPACT OF OWNERSHIP STRUCTURE ON FIRM PERFORMANC OF DEPOSIT MONEY BANKS IN NIGERIA," Nigerian Journal of Accounting Research, vol. 11, no. 1, pp. 15-32, June 2015.

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