Ownership Structure and Corporate Financial Distress in Nigeria

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Authors: AMEDE Otivbo Faith and OBAZEE Uyioghosa

Abstract

The aim of the paper is to examine the relationship between ownership structure and corporate financial distress in Nigeria. The research design adopted for the study is the expos facto research design. The population of the study consisted of all companies (44) with complete data in the financial sector, listed on the Nigerian Exchange Group. The data was sourced from the annual reports of companies listed. The data was analysed using the descriptive, correlation and regression analysis technique. The findings reviewed that higher foreign ownership minimises the likelihood of corporate financial distress. Government ownerships were found not to influence the likelihood of financial distress. Higher level of ownership concentration was found to be associated with greater likelihood of financial distress, howbeit at the 10% level of confidence. The paper recommends among others that foreign direct investment should be encouraged at organisational level by regulatory bodies and organisations, particularly foreign block owners.

Keywords: Ownership structure, financial distress, financial sector

2025 - NIJAF - 17 - 119 AMEDE ET AL..pdf

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