Adegbayibi, A. T. (2015). Equity Ownership Structure and Operating Performance of Non-Financial Quoted Companies in Nigeria. Journal of Economics and Development Studies, 3(1), 277-301. Faculty of Social and Management Sciences, Kaduna State
Abstract
This study evaluated the effect of equity ownership structure on operating performance of non-financial quoted companies in Nigeria. These were with the view to providing information on how sound ownership structure make firms more attractive to external financiers. The study made use of secondary data collected for the period 2000 – 2012. A Sample Size of fifty-five non-financial quoted companies out of 156 listed on the Nigerian Stock Exchange (NSE) were purposively selected for the study based on availability of equity ownership structure information in their Annual Reports. Data on variables such as managerial equity ownership; foreign ownership; firm size; and age were collected from the Annual Reports of the sampled companies. Data collected were analyzed using tables, percentage, correlation and regression analysis. The result found that managerial equity ownership in Nigerian non-financial quoted companies varied among sectors on yearly basis. The trend and pattern of managerial equity ownership over the study period made a relatively upward movement from 41% in year 2000 to 71% in year 2012. Furthermore, the study found that foreign ownership (t =22.22; p <0.05) had a significant positive impact on the firm performance. Finally, the result showed that institutional equity ownership structure (t =21.54; p < 0.05) impacted positively on Nigerian non-financial quoted companies return on assets.
The study concluded that equity ownership structure enhanced performance of non-financial companies in Nigeria.
Keywords: Equity ownership structure, operating performance