EFFECT OF OWNERSHIP STRUCTURE ON FIRM VALUE OF LISTED INDUSTRIAL GOODS FIRM IN NIGERIA

This study examined the effect of ownership structure on firm value of listed industrial goods companies in Nigeria. Despite the strategic importance of the industrial goods sector to Nigeria’s industrialization and economic diversification agenda, empirical evidence on how ownership structure affects firm value within the sector remains limited and inconclusive. The study adopted an ex post facto research design and employed panel data analysis covering listed industrial goods firms from 2020 - 2024. Firm value was measured using Tobin’s Q, while ownership structure was proxied by institutional ownership, managerial ownership, and ownership concentration. Firm size, leverage, and profitability were included as control variables. The data were analyzed using descriptive statistics, correlation analysis, and panel regression techniques. Based on the Hausman specification test, the fixed effects model was selected as the most appropriate estimator, and robust standard errors were applied to address diagnostic concerns. The findings reveal that institutional ownership and managerial ownership have positive and statistically significant effects on firm value, while ownership concentration exerts a negative and significant influence. The results suggest that active institutional participation and managerial equity involvement enhance corporate valuation through improved monitoring and alignment of interests, whereas excessive ownership concentration may reduce firm value due to potential entrenchment and minority shareholder expropriation. The study concludes that balanced ownership structures are essential for enhancing firm value in Nigeria’s industrial goods sector. It recommends that regulators strengthen corporate governance frameworks to encourage institutional investor participation and protect minority shareholders, while firms should adopt ownership arrangements that promote managerial alignment without fostering excessive concentration. The study contributes to corporate governance literature by providing sector-specific evidence from an emerging market context.