A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria

Bugaje Shamsuddeen Yusuf; James Uchenna Okpe; Musa Musa Muhammad

doi:doi:10.11648/j.jim.20241302.11

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A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria

Bugaje Shamsuddeen Yusuf^*

, James Uchenna Okpe, Musa Musa Muhammad

Published in Journal of Investment and Management (Volume 13, Issue 2)

Received: 11 January 2024 Accepted: 1 February 2024 Published: 17 May 2024

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Abstract

In order to better understand the moderating impacts of financial performance, this article looks at the relationship between ownership structure and firm performance of Nigerian listed commercial banks. Data on ownership structure and yearly financial reports at the firm level from 2013 to 2022 are used in the empirical analysis. Panel regression analysis methods. Block share ownership and foreign share ownership were employed in this study as independent variables, while ROA was used as a leveraged moderating effect to quantify business performance. Descriptive research and correlational research design are thus employed in this study as suitable research designs. The results indicate that around 47% of all shareholders have shares held by shareholders who possess at least 5% of the company, which is a proxy for block ownership of common shares across commercial banks in Nigeria. The foreign share ownership mean is 22.65%, with a standard deviation of 3.93%, a minimum value of 0%, and a maximum value of 1%, respectively. This indicates a sharp decline in foreign investment as a result of the unpredictability of the market and the high level of insecurity that permeates the nation. The return on assets of the commercial banks that are quoted is positively and significantly impacted by foreign ownership; a rise of one unit in the variable results in a 4.0% return on assets. At the 1% significant level, leverage mediated the association between the dependent and independent variables (FSO*LEV and BSO*LEV). The study suggested using a non-linear model to explore the hypothesis that a firm's performance could affect its ownership structure and to estimate the impact of block ownership on firms' performance.

Published in	Journal of Investment and Management (Volume 13, Issue 2)
DOI	10.11648/j.jim.20241302.11
Page(s)	25-36
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Ownership Structure, Banks, Firm Performance

References

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APA Style

Yusuf, B. S., Okpe, J. U., Muhammad, M. M. (2024). A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria. Journal of Investment and Management, 13(2), 25-36. https://doi.org/10.11648/j.jim.20241302.11

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ACS Style

Yusuf, B. S.; Okpe, J. U.; Muhammad, M. M. A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria. J. Invest. Manag. 2024, 13(2), 25-36. doi: 10.11648/j.jim.20241302.11

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AMA Style

Yusuf BS, Okpe JU, Muhammad MM. A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria. J Invest Manag. 2024;13(2):25-36. doi: 10.11648/j.jim.20241302.11

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@article{10.11648/j.jim.20241302.11,
  author = {Bugaje Shamsuddeen Yusuf and James Uchenna Okpe and Musa Musa Muhammad},
  title = {A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria
},
  journal = {Journal of Investment and Management},
  volume = {13},
  number = {2},
  pages = {25-36},
  doi = {10.11648/j.jim.20241302.11},
  url = {https://doi.org/10.11648/j.jim.20241302.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20241302.11},
  abstract = {In order to better understand the moderating impacts of financial performance, this article looks at the relationship between ownership structure and firm performance of Nigerian listed commercial banks. Data on ownership structure and yearly financial reports at the firm level from 2013 to 2022 are used in the empirical analysis. Panel regression analysis methods. Block share ownership and foreign share ownership were employed in this study as independent variables, while ROA was used as a leveraged moderating effect to quantify business performance. Descriptive research and correlational research design are thus employed in this study as suitable research designs. The results indicate that around 47% of all shareholders have shares held by shareholders who possess at least 5% of the company, which is a proxy for block ownership of common shares across commercial banks in Nigeria. The foreign share ownership mean is 22.65%, with a standard deviation of 3.93%, a minimum value of 0%, and a maximum value of 1%, respectively. This indicates a sharp decline in foreign investment as a result of the unpredictability of the market and the high level of insecurity that permeates the nation. The return on assets of the commercial banks that are quoted is positively and significantly impacted by foreign ownership; a rise of one unit in the variable results in a 4.0% return on assets. At the 1% significant level, leverage mediated the association between the dependent and independent variables (FSO*LEV and BSO*LEV). The study suggested using a non-linear model to explore the hypothesis that a firm's performance could affect its ownership structure and to estimate the impact of block ownership on firms' performance.
},
 year = {2024}
}

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TY  - JOUR
T1  - A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria

AU  - Bugaje Shamsuddeen Yusuf
AU  - James Uchenna Okpe
AU  - Musa Musa Muhammad
Y1  - 2024/05/17
PY  - 2024
N1  - https://doi.org/10.11648/j.jim.20241302.11
DO  - 10.11648/j.jim.20241302.11
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 25
EP  - 36
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20241302.11
AB  - In order to better understand the moderating impacts of financial performance, this article looks at the relationship between ownership structure and firm performance of Nigerian listed commercial banks. Data on ownership structure and yearly financial reports at the firm level from 2013 to 2022 are used in the empirical analysis. Panel regression analysis methods. Block share ownership and foreign share ownership were employed in this study as independent variables, while ROA was used as a leveraged moderating effect to quantify business performance. Descriptive research and correlational research design are thus employed in this study as suitable research designs. The results indicate that around 47% of all shareholders have shares held by shareholders who possess at least 5% of the company, which is a proxy for block ownership of common shares across commercial banks in Nigeria. The foreign share ownership mean is 22.65%, with a standard deviation of 3.93%, a minimum value of 0%, and a maximum value of 1%, respectively. This indicates a sharp decline in foreign investment as a result of the unpredictability of the market and the high level of insecurity that permeates the nation. The return on assets of the commercial banks that are quoted is positively and significantly impacted by foreign ownership; a rise of one unit in the variable results in a 4.0% return on assets. At the 1% significant level, leverage mediated the association between the dependent and independent variables (FSO*LEV and BSO*LEV). The study suggested using a non-linear model to explore the hypothesis that a firm's performance could affect its ownership structure and to estimate the impact of block ownership on firms' performance.

VL  - 13
IS  - 2
ER  -

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Author Information

Bugaje Shamsuddeen Yusuf

Department of Accounting, Federal University, Dutsin-Ma, Nigeria

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http://orcid.org/0009-0005-1163-6308
James Uchenna Okpe

Department of Accounting, Federal University, Dutsin-Ma, Nigeria

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Musa Musa Muhammad

Department of Accounting, Federal University, Dutsin-Ma, Nigeria

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APA Style

Yusuf, B. S., Okpe, J. U., Muhammad, M. M. (2024). A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria. Journal of Investment and Management, 13(2), 25-36. https://doi.org/10.11648/j.jim.20241302.11

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ACS Style

Yusuf, B. S.; Okpe, J. U.; Muhammad, M. M. A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria. J. Invest. Manag. 2024, 13(2), 25-36. doi: 10.11648/j.jim.20241302.11

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AMA Style

Yusuf BS, Okpe JU, Muhammad MM. A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria. J Invest Manag. 2024;13(2):25-36. doi: 10.11648/j.jim.20241302.11

Copy | Download

@article{10.11648/j.jim.20241302.11,
  author = {Bugaje Shamsuddeen Yusuf and James Uchenna Okpe and Musa Musa Muhammad},
  title = {A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria
},
  journal = {Journal of Investment and Management},
  volume = {13},
  number = {2},
  pages = {25-36},
  doi = {10.11648/j.jim.20241302.11},
  url = {https://doi.org/10.11648/j.jim.20241302.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20241302.11},
  abstract = {In order to better understand the moderating impacts of financial performance, this article looks at the relationship between ownership structure and firm performance of Nigerian listed commercial banks. Data on ownership structure and yearly financial reports at the firm level from 2013 to 2022 are used in the empirical analysis. Panel regression analysis methods. Block share ownership and foreign share ownership were employed in this study as independent variables, while ROA was used as a leveraged moderating effect to quantify business performance. Descriptive research and correlational research design are thus employed in this study as suitable research designs. The results indicate that around 47% of all shareholders have shares held by shareholders who possess at least 5% of the company, which is a proxy for block ownership of common shares across commercial banks in Nigeria. The foreign share ownership mean is 22.65%, with a standard deviation of 3.93%, a minimum value of 0%, and a maximum value of 1%, respectively. This indicates a sharp decline in foreign investment as a result of the unpredictability of the market and the high level of insecurity that permeates the nation. The return on assets of the commercial banks that are quoted is positively and significantly impacted by foreign ownership; a rise of one unit in the variable results in a 4.0% return on assets. At the 1% significant level, leverage mediated the association between the dependent and independent variables (FSO*LEV and BSO*LEV). The study suggested using a non-linear model to explore the hypothesis that a firm's performance could affect its ownership structure and to estimate the impact of block ownership on firms' performance.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - A Moderating Effect of Financial Performance in a Relationship Between Ownership Structure and Firm Performance of Listed Commercial Banks in Nigeria

AU  - Bugaje Shamsuddeen Yusuf
AU  - James Uchenna Okpe
AU  - Musa Musa Muhammad
Y1  - 2024/05/17
PY  - 2024
N1  - https://doi.org/10.11648/j.jim.20241302.11
DO  - 10.11648/j.jim.20241302.11
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 25
EP  - 36
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20241302.11
AB  - In order to better understand the moderating impacts of financial performance, this article looks at the relationship between ownership structure and firm performance of Nigerian listed commercial banks. Data on ownership structure and yearly financial reports at the firm level from 2013 to 2022 are used in the empirical analysis. Panel regression analysis methods. Block share ownership and foreign share ownership were employed in this study as independent variables, while ROA was used as a leveraged moderating effect to quantify business performance. Descriptive research and correlational research design are thus employed in this study as suitable research designs. The results indicate that around 47% of all shareholders have shares held by shareholders who possess at least 5% of the company, which is a proxy for block ownership of common shares across commercial banks in Nigeria. The foreign share ownership mean is 22.65%, with a standard deviation of 3.93%, a minimum value of 0%, and a maximum value of 1%, respectively. This indicates a sharp decline in foreign investment as a result of the unpredictability of the market and the high level of insecurity that permeates the nation. The return on assets of the commercial banks that are quoted is positively and significantly impacted by foreign ownership; a rise of one unit in the variable results in a 4.0% return on assets. At the 1% significant level, leverage mediated the association between the dependent and independent variables (FSO*LEV and BSO*LEV). The study suggested using a non-linear model to explore the hypothesis that a firm's performance could affect its ownership structure and to estimate the impact of block ownership on firms' performance.

VL  - 13
IS  - 2
ER  -

Copy | Download