THE EFFECT OF OWNERSHIP STRUCTURE ON THE FINANCIAL PERFORMANCE OF NON-FINANCIAL SERVICE COMPANIES IN NIGERIA

ABSTRACT This study examined the effect of ownership structure on the financial performance of non-financial service companies listed on the Nigerian Exchange Group (NGX) between 2020 and 2024. Ownership structure was proxied by managerial ownership, institutional ownership, government ownership, and foreign ownership, while financial performance was measured by Return on Assets (ROA). Secondary data were extracted from audited annual reports, and analysis was conducted using descriptive statistics, correlation analysis, and regression models. The findings revealed that managerial ownership and institutional ownership have positive and significant effects on ROA, indicating that both align managerial incentives and improve monitoring efficiency. Government ownership, however, showed a negative and significant relationship with ROA, highlighting inefficiencies caused by political interference and bureaucracy. Foreign ownership had the strongest positive and significant impact on ROA, suggesting that foreign investors contribute valuable resources such as technology, expertise, and global best practices that enhance profitability. The study concluded that ownership structure plays a crucial role in shaping the financial performance of Nigerian non-financial firms. It recommends encouraging optimal managerial ownership, strengthening institutional monitoring, reducing excessive government ownership, and creating a favorable environment for foreign investors. Keywords: Ownership Structure, Managerial Ownership, Institutional Ownership, Government Ownership, Foreign Ownership, Return on Assets (ROA), Financial Performance.