Ownership Structure and Organizational Performance: An Investigation of Food and Beverage Companies in Nigeria

  • Folorunso O. O Department of Business Administration and Management Studies The Polytechnic, Ibadan, Nigeria.
  • Sajuyigbe Ademola
Keywords: Ownership Structure, Return on Assets and Equity, Government ownership, Foreign Ownership


This study examines the influence of ownership structure dimensions on organizational performance with specific reference to Nigerian Food and Beverage Companies. Ex-post facto research design was adopted for this study because Ex-post facto is a methodological verifiable investigation which cannot be manipulated. The population of this study consist of all the companies listed on the Nigerian Stock Exchange (NSE). The companies listed are classified into twelve industrial sectors, and each sector comprises of homogenous companies.  The sample size of the study was selected based on Nigerian Stock Exchange classification of the listed companies into industrial stratum of homogeneous companies of same or similar characteristics, which the food and beverage industry forms a strata. Purposive sampling technique was used to select sixteen (16) listed food and beverage companies. The data collected for this study were extracted from the audited annual financial reports and accounts of the listed food and beverages companies in the Nigerian Stock Exchange (NSE) from 2012-2016. Both Pearson Moment Correlation Coefficient and Linear Regression techniques were employed to analyse the data. Result reveals that managerial ownership, institutional ownership, government ownership and family ownership have no significant influence on organizational performance. Result also indicates that foreign ownership has significant influence on organizational performance. Study concluded that foreign ownership structure is strong predictor of organizational performance, while, managerial ownership structure; government ownership structure and family ownership structure are weak predictors of organizational performance. Subsequently, study recommends that the policy that will encourage foreign direct investment in Nigeria should be aggressively pursued by government.


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Author Biographies

Folorunso O. O, Department of Business Administration and Management Studies The Polytechnic, Ibadan, Nigeria.



Sajuyigbe Ademola

Department of Business Administration and Management, Osun State Polytechnic, Iree, Nigeria.


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How to Cite
O. O, F., & Ademola, S. (2018). Ownership Structure and Organizational Performance: An Investigation of Food and Beverage Companies in Nigeria. SOCIALSCI JOURNAL, 2, 211-226. Retrieved from http://purkh.com/index.php/tosocial/article/view/165
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