Effect of Ownership Structure on Financial Information of Listed Deposit Money Banks in Nigeria

Abstract

This study investigates the effect of ownership structure on the quality of financial information disclosed by listed Deposit Money Banks (DMBs) in Nigeria. The study specifically examines the roles of managerial ownership, institutional ownership, and ownership concentration, while controlling for firm size and leverage. Employing an ex post facto research design and using panel data from fifteen (15) listed DMBs covering multiple years, the study applies the two-step System Generalized Method of Moments (GMM) to address issues of endogeneity and unobserved heterogeneity. The results reveal that institutional ownership significantly enhances the quality of financial information, while ownership concentration negatively affects it. Managerial ownership, however, has no significant impact. The study recommends that regulators encourage institutional investor participation, implement safeguards against the negative implications of concentrated ownership, and enforce strong governance practices across the banking sector. These measures are essential to strengthening stakeholder confidence and improving the integrity of financial disclosures in Nigeria’s financial system.