OWNERSHIP STRUCTURE AND VALUE CREATION IN NIGERIAN COMMERCIAL BANKS

OWNERSHIP
STRUCTURE AND VALUE
CREATION IN NIGERIAN
COMMERCIAL BANKS
OKEZIE, STELLA OGECHUKWU
Department of Accounting, Micheal
Okpara University of Agriculture,
Umudike
ABSTRACT
The issue of governance plays a vital role in
the overall wellbeing of an organization with
ownership structure being a focal point. This
study examined the impact of ownership
structure on value creation in Nigeria
commercial banks. Data was collected from
Accounting and Finance Research Association
ten (10) banks listed on the Nigerian stock
exchange for the period of 2010-2019.The
Fixed effects model was applied to evaluate
the impact of ownership structure on value
creation in the Nigeria banks. The
econometric estimate showed that Directors’
ownership has negative and significant impact
on shareholders’ fund of Nigerian Banks.
Secondly, institutional ownership has positive
and significant effect on shareholders’ fund in
Nigerian Banks. Lastly, foreign ownership has
no significant influence on shareholders’ fund
of Nigerian Banks. Conclusively, the fixed
effect econometric estimator employed in
this study indicates that ownership structure
has significant impact on shareholders’ fund
of Nigerian banks. The study therefore
recommends among other things that more
institutions should be encouraged to invest in
Nigerian banks. Again, banks should endeavor
to utilize foreign investments to improve
value creation for shareholders.
Keywords: Value Creation, Ownership
Structure, Shareholders’ Fund, Investment,
Governance

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