OWNERSHIP IDENTITY AS A LIFEBLOOD FOR FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA. Ajah, Emmanuel Nnamdi (Ph.D) & Onowu, Joseph Uche (Ph.D, CNA) Email:ajahen@fuotuoke.edu.ng, onowuju@fuotuoke.edu.ng Department of Accounting, Federal Un

Abstract

This study investigated the effect of ownership identity on financial performance of listed deposit money banks in the Nigerian Exchange Group. Data on two components of ownership identity (managerial ownership identity, and institutional ownership identity) and two financial performance proxies (return on assets, and return on equity) were employed as dependent and independent variable proxies. The study employed ex-post facto research design. The population of the study was fourteen (14) listed deposits money banks in the Nigerian Exchange Group, and ten (10) listed deposit money banks was used as sample size employing purposive sampling technique. The data used in the study was secondary data and it was sourced from annual reports and statement of accounts of the selected firms between 2015 and 2022. The method of data analysis was descriptive statistics, unit root test, diagnostic tests, Hausman Test and Panel Least Square (PLS) regression technique with the help of E-view 12, while the Moderated Multiple Regression (MMR) techniques were used for the purpose of moderating variable analysis with the help of SPSS. The result revealed that the effect of managerial ownership identity on return on assets of listed deposit money banks in Nigeria is positive and insignificant, the effect of managerial ownership identity on return on equity of listed deposit money banks in Nigeria is positive but statistically insignificant, the effect of managerial ownership identity on earnings per share of listed deposit money banks in Nigeria is negative and insignificant, the effect of institutional ownership identity on return on assets of listed deposit money banks in Nigeria is negative and insignificant, the effect of institutional ownership identity on return on equity of listed deposit money banks in Nigeria is negative and insignificant, the effect of foreign ownership identity on return on assets of listed deposit money banks in Nigeria is negative and insignificant, the effect of foreign ownership identity on return on equity of listed deposit money banks in Nigeria is negative and insignificant. The study generally concluded that the effect of ownership identity on financial performance measures of the studied deposit money banks (DMBs) is positive and insignificant for the time frame investigated. The study recommends amongst other that the managerial investors should have extensive networks and connections that can provide access to potential business opportunities, partnerships, and collaborations. These opportunities can help companies enhance their return on assets by expanding their customer base, entering new markets, or improving operational efficiency.