EKSU Journal of the Management Scientists

Effect of Leverage and Ownership Structure on the Financial Performance of Listed Non-Financial Firms in Nigeria

Abstract

The effect of leverage and ownership structure on the financial performance of Nigeria listed consumer goods was examined in this study. The sample size comprises of 20 firms with period ranging from 2013 to 2021. Panel regression analysis and correlation analysis was the data estimation method used to analysed the data gathered for this study. Findings from this study revealed that leverage has a negative and significant impact on return on equity evidenced with t-statistics and p-value of (-3.66 and 0.024). Also, managerial and foreign ownership structure have significant and positive influence on ROE supported with t-statistics and p-values of (4.54,14.66) and (0.000,0.000) while institutional ownership structure was found to have no statistically significant influence on ROE evidenced with t-statistic and p-value of (-1.54 and 0.123). The study concluded that leverage, foreign and managerial ownership structure have the tendency to improve firm financial performance, as a result, this study recommends appropriate usage of leverages and also that firm ownership structure should also comprise of well skilled people.