Corporate Ownership Construct and Firm Value: Evidence From An Emerging Market

Abstract

This study focuses on the intricate relationships between various types of ownership structures and the performance of the organization using Tobin's Q. The secondary data was obtained from 49 firms in the Nigerian Exchange Group, which covers ten years (2013-2022). The results of the study show that First Large ownership has an insignificant positive relationship, Block Family ownership has an insignificant negative relationship, CEO ownership has an insignificant negative relationship and Management ownership has an insignificant negative relationship with Tobin's Q, respectively, suggesting that other factors may have a greater influence on determining the value of a firm. These possible influences involve conflicts of interest and corporate governance concerns in situations where ownership is concentrated, and the intricate nature of the relationship between ownership and the agents of the business. The study recommended reinforcing legislation on corporate governance, achieving equilibrium in ownership-agent activities, optimising systems for family governance, and cultivating a conducive institutional environment to augment business performance and market valuation. More so, findings further suggested the enhancement of corporate governance mechanisms in developing economies, which may provide operational knowledge for policymakers, investors, and business executives seeking to maximise investment profitability and corporate effectiveness and expand their portfolio base.