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

1.1 Determinants of Ownership Structure 1

1.2 Objective of the study 4

1.3 Scope of the Study 4

2. LITERATURE REVIEW

2.1 Overview of the Cement Industry 4

2.2 Concept of Ownership Structure 5

2.3 Characteristics of the Nigerian Cement Industry 8

2.4 Types of Ownership Structures Relevant to the Study 9

2.4.1 Managerial Ownership and Firm Performance 9

2.4.2 Institutional Ownership and Firm Financial performance 11

2.4.3 Ownership concentration and Firm Financial performance 12

2.5 Theoretical Review of Related Literature 13

3.1 Limitations of the Study 14

3.2 Conclusion 14

Recommendations 15

References 16-17

Figure 2.1 6

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

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