Ownership Structure and Earnings Quality of Listed Financial Firms in Nigeria

The study determined the effect of ownership structure on earnings quality of listed financial firms in Nigeria.The study employed secondary data.The study population comprised all the 16 listed financial firms on the Nigerian Stock Exchange.Purposive sampling technique was adopted to select top 10 banks whose shares are consistently traded on the stock market.Data for ownership structure and earnings quality were sourced from the audited financial statements of the selected firms and the Nigerian Stock Exchange Factbook over a period of 10 years(2009-2018).Collected data were analyzed using pooled ordinary least square,fixed effect and random effect estimation techniques.The result from the study showed that institutional ownership(t=4.3,p˂0.05)had a positive and statistically significant relationship with earnings quality while ownership concentration(t=-2.5,p˂0.05)had a negative and significant relationship with earnings quality.The study recommended that the institutional ownership which shows a positive relationship with earnings quality enables improved earnings of the sampled listed banks.More institutional participation should be allowed in the Nigerian listed banks as it was proved that they have the power to monitor the affairs of managers as this will have a positive impact on earnings.Concentration ownership gives managers incentives to manage earnings to achieve short term opportunistic interest;therefore it should not be encouraged.

The Effects of Director Ownership on Capital Adequacy and Risk Taking Among Private Commercial Banks in Bangladesh Within the Basel Capital Adequacy Framework

The study examines the effect of director’s ownership on capital adequacy and risk taking of private commercial banks in Bangladesh within the Basel capital adequacy framework.The secondary panel data were obtained from annual report of quoted 20 private commercial Banks in Bangladesh as compiled in the Dhaka Stock Exchange for the period 2015 to 2019.The study finds the director’s ownership concentration plays an important role in capital formation that contributes to reducing excess risk taking.However,the presence of director’s ownership in capital adequacy influences risk-taking practices of banking industries.These results support the research on capital formation and risk taking.The study adds a new dimension to the capital mechanism research that could be a valuable source of knowledge for policy makers and regulators of financial industries.As this study covers the role of director’s ownership on capital adequacy and risk taking,it could be useful for capital formation,regulation,and policy making.