Impact of ownership structure on value creation in Nigeria Banks:- Ogbua Stella C

ABSTRACT

This study examined the impact ofownership structure on value creation in Nigeria banks. The study used ex-post facto research design and panel data covering five-year period from 2014- 2018 for ten (10) banks listed on the Nigerian stock exchange. 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 ofNigerian Banks. Secondly, institutional ownership has positive and significant effect on shareholders' fund ofNigerian Banks. Lastly, foreign ownership has no significant influence on shareholders' fund ofNigerian Banks. Conclusively, the fixed effect econometric estimator employed in this study indicates that ownership structure has significant impact on shareholders ' fund of Nigerian banks. Therefore, the study recommends among other things that more institutions should be encourage to invest in Nigerian banks. Again, banks should ensure that they utilize foreign investments to improve value creation for the shareholders. Finally, the study recommends that further research be conducted to investigate how executive and non - executive directors' ownership affects the shareholders' fund.