OWNERSHIP STRUCTURE AND FINANACIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

This study investigated the effect of ownership structure on the financial performance of listed deposit money banks in Nigeria. The population of the study consists of thirteen (13) listed deposit money banks in the Nigerian stock exchange as of 31st December 2023. The theoretical framework for examining the effect of ownership structure on the financial performance of listed deposit money banks in Nigeria encompasses several key theories that provide a comprehensive understanding of the mechanism and outcome of ownership structure. The sampling technique employed in this study was the extraction of secondary data from the annual reports and accounts of the sampled banks. The hypothesis was stated in null form, and multiple regressions were used to analyze the data. The Hausman test showed the random effect model as the appropriate model for the study. The result of the model one revealed that financial performance proxied by managerial ownership has an insignificant negative effect on return on equity (ROE), institutional ownership has a significant negative effect on return on equity (ROE), and foreign ownership has an insignificant positive effect on return on equity (ROE). The findings reveal that Managerial ownership and foreign ownership had a negative and insignificant effect on return on equity (ROE). This study discovered that the interaction between institutional ownership structure and financial performance was negative and significantly influenced financial performance. It can be concluded in the study that banks are increasing their Managerial ownership very rapidly, but their growth does not produce any outcome for the listed banks in Nigeria. It is recommended that institutional equity shareholders continue investing their resources and expertise to exercise control over management abuse of power, which can affect the financial performance of listed deposit money banks. Also, it is recommended that banks should reduce their managerial holdings because it is detrimental to financial performance.