EFFECT OF OWNERSHIP STRUCTURE ON FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

This study investigates the effect of ownership structure on the financial performance of listed industrial goods firms in Nigeria, specifically assessing the impact of institutional ownership and managerial ownership on return on assets (ROA). Employing a descriptive and correlational research design, the study focuses on industrial goods firms listed on the Nigerian Exchange Group (NGX) as of December 29, 2023, which includes 22 companies. A purposive sampling technique was utilized to select firms with complete financial data from 2018 to 2023, ensuring the reliability and validity of the findings. Data were collected from audited financial statements, annual reports, and publications from the NGX, supplemented by relevant academic journals, textbooks, and industry reports. The analysis employed descriptive statistics, correlation analysis, and panel regression models, utilizing statistical software such as Stata or EViews to handle the panel data. The findings indicate that institutional ownership significantly affects the ROA of listed industrial goods firms in Nigeria, and there is a notable relationship between managerial ownership and ROA. The study concludes that both institutional and managerial ownership positively influence the financial performance of these firms. Consequently, it is recommended that firms increase institutional ownership to enhance financial performance and optimize managerial ownership levels to better align management incentives with shareholder interests.