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EQUITY OWNERSHIP STRUCTURE AND EQUITY RETURNS OF NIGERIAN QUOTED COMPANIES

Francis Kehinde Emeni and Sunday Nosakhare Ugbogbo
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Francis Kehinde Emeni: The Institute of Chartered Accountants of Nigeria, Postal: Research and Technical Department, The Institute of Chartered Accountants of Nigeria, http://research.icanig.org/
Sunday Nosakhare Ugbogbo: Benson Idahosa University, Postal: Benson Idahosa University, Benin City, Nigeria

International Journal of Accounting and Finance (IJAF), 2018, vol. 07, issue 2, 2-15

Abstract: This study, examines the relationship between equity ownership structure (chairman ownership, family ownership, institutional ownership) and stock returns of Nigerian quoted companies. Based on a purposive sampling framework, 60 companies in the Nigerian StockExchange (NSE) were selected as sample for the study. The procedure was adopted because of paucity of data that cover the area of interest. Data for chairman, family and institutional ownership and the control variables (dividend per share, earnings per share) were sourced from annual reports of respective companies, while the stock price data for computing annual stock returns for the companies were obtained from the NSE official daily price listings. The data were analyzed using multiple regressions with the aid of the Microsoft Excel and E-Views 8.0 computer packages. Findings indicate that firm's equity ownership structure can effectively predict the returns outcome of stocks in the Nigerian market place. Such predictive power calls foran appropriate balance to be maintained (by firms) among the various equity ownership structures and their stock returns in the Nigerian Stock Exchange in order to ensure a well coordinated capital market and especially to maintain stability in the market. It is, therefore, recommended that overall, shareholding by the chairman, family ownership and institutions should be encouraged amongst quoted companies in Nigeria, if the much desired Economic Recovery and Growth which Nigeria craves for is to be achieved.

Keywords: Ownership structure; Nigeria stock exchange; Stock returns; Equity shares (search for similar items in EconPapers)
Date: 2018
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