International Journal of Social Science & Economic Research
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Title:
OWNERSHIP STRUCTURE AND CAPITAL STRUCTURE: EVIDENCE FROM LISTED AGRICULTURAL FIRMS IN NIGERIA

Authors:
FASUA, Kayode Olushola ; ABUBAKAR, Idris Ayokanmi ; OJO, Lukman Olatunji and MFON Umana

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FASUA, Kayode Olushola1 ; ABUBAKAR, Idris Ayokanmi2 ; OJO, Lukman Olatunji3 and MFON Umana4
1. Nigerian College of Accountancy, Kwall, Jos
2. Department of Banking and Finance, Nasarawa State University, Keffi
3. Department of Accounting, Nasarawa State University, Keffi
4. Institute of Governance and Strategic Studies, Nasarawa State University, Keffi

MLA 8
Olushola, FASUA, Kayode, et al. "OWNERSHIP STRUCTURE AND CAPITAL STRUCTURE: EVIDENCE FROM LISTED AGRICULTURAL FIRMS IN NIGERIA." Int. j. of Social Science and Economic Research, vol. 5, no. 10, Oct. 2020, pp. 3152-3168, doi:10.46609/IJSSER.2020.v05i10.022. Accessed Oct. 2020.
APA 6
Olushola, F., Ayokanmi, A., Olatunji, O., & Umana, M. (2020, October). OWNERSHIP STRUCTURE AND CAPITAL STRUCTURE: EVIDENCE FROM LISTED AGRICULTURAL FIRMS IN NIGERIA. Int. j. of Social Science and Economic Research, 5(10), 3152-3168. doi:10.46609/IJSSER.2020.v05i10.022
Chicago
Olushola, FASUA, Kayode, ABUBAKAR, Idris Ayokanmi, OJO, Lukman Olatunji, and MFON Umana. "OWNERSHIP STRUCTURE AND CAPITAL STRUCTURE: EVIDENCE FROM LISTED AGRICULTURAL FIRMS IN NIGERIA." Int. j. of Social Science and Economic Research 5, no. 10 (October 2020), 3152-3168. Accessed October, 2020. doi:10.46609/IJSSER.2020.v05i10.022.

References

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Abstract:
This study explores the effect of ownership structure on Nigeria's listed agricultural firms’ capital structure over 11 year period from 2009 to 2019. The study adopted ex post facto research design. The population consisted of five agricultural firms listed on the Nigerian Stock Exchange floor. The research used census sampling methods to take the whole population. Primary data from the listed agricultural firms' annual reports were used. The Hausman specification test was conducted to determine the use of random effect or Fixed effect regression, based on the Hausman test results, the study used opted for Random effect regression. The result of the Random Effect Regression showed that managerial ownership and the concentration of ownership have no significant effect on capital structures while institutional ownership has a significant positive influence on capital structure of the listed agricultural firms in Nigeria. The study concludes that ownership structure has a major effect on Nigeria's listed agricultural firms' capital structure. The study recommends that management should allow managers to buy and own shares in their companies. The Securities and Exchange Commission should also strengthen the supervision of major shareholders and diversify the ownership base of listed agricultural companies by reducing the percentage of long-term debt shares held by major shareholders to prevent a few investors from gaining control.

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