Firm Ownership Structure and Corporate Profitability in Nigeria

This study examines the relationship between firm ownership structure and corporate profitability in Nigeria, focusing on ownership concentration, managerial ownership, and institutional ownership. The objective is to determine how these ownership forms influence the return on assets (ROA) of firms within the Nigerian context. The study adopts a quantitative research design, relying on secondary data obtained from the annual reports of nine listed manufacturing firms covering the period 2018–2022. Descriptive statistics, correlation, and multiple regression analyses were employed using STATA software to evaluate the data. Findings reveal that ownership concentration, managerial ownership, and institutional ownership significantly influence corporate profitability, though their effects vary in magnitude and direction. Specifically, ownership concentration showed the strongest positive effect on profitability, indicating that firms with more concentrated ownership tend to perform better due to improved monitoring and reduced agency conflicts. The study concludes that an optimal ownership mix enhances profitability and recommends that Nigerian firms strengthen corporate governance mechanisms, encourage strategic institutional participation, and align managerial interests with shareholders through equity incentives to promote sustainable financial performance and growth.