Relationship between Ownership structure and performance of Quoted Cement firms in Nigeria

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Abstract

This research work is a study of the relationship between the ownership structure of quoted cement manufacturing companies in Nigeria and their financial performance. Studies on ownership structure and firm’s financial performance have been conducted in different parts of the globe with different findings, some of which are inconclusive. The researcher adopted both theoretical and empirical research Design for this study to evaluate studies and findings related to the subject. In Nigeria, studies conducted in this area are mostly focused on the financial sector which is a gap that needs to be filled. This study fills the gap by examining the impact of ownership structure on financial performance of quoted cement firms in Nigeria. The study explores the institutional ownership and managerial ownership which showed a positive significant impact on the financial performance of quoted cement firms in Nigeria based on empirical findings, while ownership concentration showed no significant impact on the financial performance of cement firms in Nigeria. The study concludes that ownership structure affects financial performance of quoted cement firms in Nigeria and therefore recommends that Security and Exchange Commission should encourage more potential managers and Institutional shareholders to invest long term in the cement industry as both managers and Institutional shareholders enhances financial performance of the firms.

Key words: Managerial ownership, Institutional ownership, ownership concentration, Security and Exchange Commission (SEC), Nigerian Stock Exchange (NSE) Agency Theory, Stakeholder Theory, Gross Domestic Product (GDP).

1.INTRODUCTION 1

1.1Determinants of Ownership Structure 1

1.2Objective of the study4

1.3Scope of the Study4

2.LITERATURE REVIEW

2.1Overview of the Cement Industry4

2.2Concept of Ownership Structure5

2.3Characteristics of the Nigerian Cement Industry8

2.4Types of Ownership Structures Relevant to the Study9

2.4.1Managerial Ownership and Firm Performance 9

2.4.2Institutional Ownership and Firm Financial performance11

2.4.3Ownership concentration and Firm Financial performance12

2.5Theoretical Review of Related Literature13

3.1Limitations of the Study14

3.2Conclusion14

Recommendations15

References16-17

Figure 2.1 6

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Relationship between Ownership structure and performance of Quoted Cement firms in Nigeria

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