The Effect of Ownership Structure on Firm Performance of Listed Consumer Goods Firms in Nigeria

Olufisayo Babalola; Olalekan Emmanuel Obademi; Peter Ngozi Amah

Olufisayo Babalola
Olalekan Emmanuel Obademi
Peter Ngozi Amah

Keywords: : CEO ownership, board ownership, block ownership, enterprise value

Abstract

The study analysed the influence of ownership structure on the firm performance of fifteen (15) listedconsumer goods firms in Nigeria from 2011 to 2021. The firm's performance was proxied by return onassets and enterprise value. The ownership structure was measured by the chief executive officer
(CEO), board, and block ownership. The findings show that CEO ownership significantly positively
affects the return on assets of listed consumer goods firms in Nigeria. Board and block ownership havean insignificant influence on the return on assets of listed consumer goods firms in Nigeria. Similarly, block ownership significantly positively affects the enterprise value of listed consumer goods firms inNigeria. CEO and board ownership have an insignificant effect on the enterprise value of listedconsumer goods firms in Nigeria. The study recommends that block owners should be allowed to usetheir skills and experience to help companies achieve their goals.