OWNERSHIP STRUCTURE AND FINANCIAL PERFORMANCE OF QUOTED MORTGAGE BANKS IN NIGERIA

Abstract

The financial performance of mortgage banks worldwide has been a significant source of worry among researchers, professionals, and other stakeholders because of the substantial role mortgage banks play in people’s well-being and economic activity. Despite mortgage bank reforms, the mortgage banking systems in Nigeria are still developing. They remain at a low level of financial performance, poor financing management, and decline in economic performance indicators due to poor ownership structure among mortgage banks in Nigeria. This study examines the effects of ownership structure (significant shareholding, government holding, and minority holding) on financial performance indicators (earnings per share, net profit margin and bank size via total assets) of Nigerian mortgage banks. Ex-post facto research design was employed as well as the panel regression method of analysis, and data was sourced from selected mortgage banks in Nigeria from 2011 to 2020. The study found that ownership structure components (significant shareholding, government holding, and minority holding) have positive and significant effect on financial performance indicators of selected mortgage banks in Nigeria at less than a p<0.05 level of significance. The study concluded that ownership structure components affect financial performance indicators of selected mortgage banks in Nigeria. Therefore, the study recommended that there is a need for mortgage banks in Nigeria to increase their ownership structure in terms of significant shareholding, government holding, and minority holding), as it was found that ownership structure absolutely affects the financial performance indicators of mortgage banks quoted in Nigeria.

Keywords

• Financial Performance
• Government Holding
• Significant Shareholding
• Minority Holding