BANKS OWNERSHIP AND FIRM PERFORMANCE: AN EMPIRICAL ASSESSMENT OF MICROFINANCE BANKS IN NIGERIA
Abstract
The study empirically assessed bank ownership and firm performance with specific focus on microfinance banks in Ogun State Nigeria. This study specifically evaluated the relationship between concentrated ownership, government ownership and managerial ownership on performance of microfinance banks in Ogun State. The study made use of descriptive survey research design, correlation and regression estimation techniques. Findings showed that concentrated and government ownership had a positive and significant relationship with the performance of microfinance banks in the scope of study. While, managerial ownership had a negative and insignificant impact on microfinance bank’s performance. Additionally, the study concluded that the relationship between ownership of microfinance banks and performance in Nigeria is positive and significant to a large extent and sufficient to foster the performance, profitability and sustainability of microfinance banks. Therefore, the study recommended that managerial teams in microfinance banks should put in place sophisticated system that would enhance the accountability and effectiveness of the bank performance; facilities channeled to the government owned microfinance banks should be utilized effectively and their performance should be evaluated regularly. Furthermore, investors in microfinance banks should focused more on the internal means of enhancing their performance by retaining most of their profit rather than outright distribution.
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Authors
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