ABSTRACT
Various studies on Ownership structure and firm's financial performance have been conducted in different parts of the globe with different findings that are mixed and inconclusive. In Nigeria, studies conducted in this area are mostly focused on the financial sector which is a gap that needs to be filled. This study fills the gap by examining the impact of ownership structure on financial performance of quoted building materials firms in Nigeria. The population of the study consists of six (6) cement firms quoted on the Nigerian stock exchange as at 31st December 2013.
Four (4) firms were selected using two criteria. Cement companies that made available their annual report of eight years and cement companies quoted on the Nigerian stock exchange before 2004. The study uses multiple regression as a tool for analysis and tested for fixed and random effect. The study reveals that institutional ownership and managerial ownership showed a positive significant impact on the financial performance of quoted building materials firms in Nigeria, while ownership concentration showed no significant impact on the financial performance of quoted building material firms in Nigeria.
The study concludes that ownership structure affects financial performance of building materials firms in Nigeria and therefore recommends that Security and Exchange Commission should encourage more potential managers and Institutional shareholders to invest long term in building materials industry as both managers and Institutional shareholders enhances financial performance of quoted building materials firms in Nigeria.
