The Impact of Ownership Structure on the Financial Performance of Listed Insurance Firms in Nigeria

Abstract This paper examines the impact of ownership structure on the financial performance of listed insurance firms in Nigeria. The study uses panel data for seventeen (17) firms for the period 2001 – 2010 (10 years). There are several aspects and dimensions of corporate governance, which may influence a firm’s performance but this study focuses on two aspects of ownership structure: namely managerial and institutional shareholding. Firm’s performance has been measured through Return on Asset (ROA) and Return on Equity (ROE). Findings indicate that there is a positive significant relationship between ownership structure and firm’s performance as measured by ROA and ROE. This paper recommends that the code on owners equity of listed insurance companies should be sustained and encouraged so that the firms can have a perpetual life, because the stake of this owners could serve as a check and balance mechanism to further strengthen the corporate governance of the insurance firms in order to give room for enhanced financial performance of the listed insurance companies in Nigeria.