European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

Foreign shareholding Firm Size and Leverage

Equity Formation and Financial Performance of Listed Deposit Money Banks in Nigeria (Published)

This study examines the influence of equity formation on financial performance of listed Deposit Money Banks in Nigeria. The study covers the period of ten years 2005 to 2014. Data for the study were extracted from the banks’ annual reports and accounts using 100 firm-year paneled observations. A multiple regression was employed to test the model of the study using Ordinary Least Square (OLS). After running for OLS a robustness test was conducted to improve the validity and reliability of statistical inferences. The results from the analysis revealed an inverse relationship between managerial shareholding and institutional shareholding and ROE Deposit Money Banks in Nigeria, while foreign shareholding showed a positive significant impact on ROE of listed Deposit Money Banks in Nigeria. In line with the foregoing findings, the study recommended that the Nigerian Deposit Money Banks should consider higher percentage of foreign shareholding by encouraging foreigners to invest in their firms as it was empirically observed that increasing such improves banks’ performance. It was also recommended that listed Deposit Money Banks in Nigeria should discourage having higher percentages of institutional shareholdings and managerial shareholdings by the banks as it was clearly observed from the findings of the study that increasing one of them reduces performance the listed Deposit Money Banks in Nigeria.

Keywords: Foreign shareholding Firm Size and Leverage, Institutional Shareholding, Managerial Shareholding

Scroll to Top

Don't miss any Call For Paper update from EA Journals

Fill up the form below and get notified everytime we call for new submissions for our journals.