Open AccessOwnership structures and firm performance in Nigeria: A canonical correlation analysis
Author(s) -
Abdul Adamu,
Joel Haruna
Publication year - 2020
Publication title -
journal of research in emerging markets
Language(s) - English
Resource type - Journals
ISSN - 2663-905X
DOI - 10.30585/jrems.v2i4.537
Subject(s) - business , foreign ownership , return on assets , accounting , earnings , earnings per share , canonical correlation , positive correlation , monetary economics , financial system , demographic economics , finance , economics , foreign direct investment , artificial intelligence , computer science , medicine , profitability index , macroeconomics
This study examined the relationship between ownership structure and performance of listed non-financial firms in Nigeria. Secondary data on managerial ownership, ownership concentration, foreign ownership, institutional ownership, Tobin q, return on assets, return on equities, and earnings per shares were collected from forty (40) sampled firms. The data were analyzed using canonical correlation and the findings showed that managerial and foreign ownerships are the dominant ownership structures while Tobin q, EPS, and ROA are the dominant performance measures. The study also found that ownership concentration, foreign ownership, and institutional ownership are positively correlated with firm performance, while managerial ownership is negatively correlated with firm performance. The study recommended that listed non-financial firms should encourage foreign investments in their firms and rewards performing managers with shares in the firm.