|
|
| |
| Company Shareholding and Financial Performance of Quoted Commercial Banks in Nigeria with Bank Size as a Moderating Variables |
ALEXANDER ONYEBUCHI UDE, CNA, FCEnt, Ph.D
|
Abstract:
Shareholding structure is an aspect of corporate governance that has come to mitigate the agency problem inherent in the business relationship between the principal and the agent and has therefore becomes a determinant of bank performance that demands attention. Against this background, this study determines the relationship between company shareholding and financial performance of quoted deposit money banks in Nigeria from 2013-2018. The independent variable (company shareholding) is represented by managerial shareholding and foreign shareholding, while, the dependent variable (financial performance) is measured by return on assets (ROA). The panel data used for the study were sourced from the financial statements of the sampled banks. The diagnostic test conducted were correlation matrix, descriptive statistics and the Shapiro-Wilk test for normality of data. The data were analysed with robust regression technique using STATA 12 software. The results of the analysis show that managerial shareholding has a significant effect on financial performance while foreign shareholding has an insignificant but positive effect on the financial performance of Nigerian banks. The results further revealed that bank size has a significant moderation effect on the relationship between managerial shareholding and financial performance of Nigerian bank during the six (6) year period studied. The study recommends that foreign shareholding should be encouraged as it brings expertise and resources in the operation of Nigerian banks and improve their performances.
|
|
|
| | |