MANAGERIAL AND INSTITUTIONAL OWNERSHIP: HOW OWNERSHIP STRUCTURE MODERATES EARNINGS PREDICTABILITY AND FIRM VALUE IN NIGERIAN LISTED FIRMS

Authors

  • ABEGUNDE OYEWOLE NATHANIEL Author

Keywords:

Earnings predictability, Firm value, Ownership structure, Agency Theory, Institutional Theory, Signalling Theory.

Abstract

This study investigates how various forms of ownership structure, namely managerial, institutional, and foreign ownership, influence the relationship between earnings predictability and firm value among non-financial firms listed on the Nigerian Exchange. The research is grounded in Agency Theory, Signalling Theory, and Institutional Theory. It employs a balanced panel dataset comprising 902 firm-year observations from 2013 to 2023. The analysis uses random effects panel regression with Driscoll–Kraay standard errors to address issues of autocorrelation and cross-sectional dependence. The findings indicate that earnings predictability significantly enhances firm value, supporting its role as a credible signal in emerging market contexts. However, the positive impact of predictable earnings is notably reduced in the presence of higher levels of managerial and foreign ownership, suggesting that these configurations may distort the market's interpretation of earnings quality. In contrast, institutional ownership does not exhibit a significant moderating effect. Robustness checks using conventional random effects generalised least squares estimation confirm the stability of the results. The study contributes to existing literature by demonstrating that the type of ownership, rather than mere concentration, plays a critical role in shaping how earnings signals are valued in weak institutional environments. The paper recommends governance reforms that promote transparency and better alignment of ownership interests to enhance market valuation mechanisms in Nigeria and similar emerging economies.

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Published

2025-10-01

How to Cite

ABEGUNDE, O. N. (2025). MANAGERIAL AND INSTITUTIONAL OWNERSHIP: HOW OWNERSHIP STRUCTURE MODERATES EARNINGS PREDICTABILITY AND FIRM VALUE IN NIGERIAN LISTED FIRMS. ANUK College of Private Sector Accounting Journal, 2(2), 145-158. https://www.anukpsaj.com/psaj/article/view/126