IMPACT OF MANAGERIAL OWNERSHIP AND CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE OF LISTED INSURANCE FIRMS IN NIGERIA

Abstract

The study examines the effect of managerial ownership and capital structure on financial performance of the listed insurance companies in Nigeria. The study employed the longitudinal panel and correlational research design, with data from 21 purposively selected insurance companies listed on the Nigerian Exchange (NGX) Group between 2016 and 2025 analyzed. The managerial-ownership proxy was the management's stake in the firm based on the number of shares held by the management and total outstanding shares, the debt-to-total-asset ratio was used to represent capital structure and financial performance was captured using return on assets. Annual reports were used for data collection. Panel regression analysis was utilized to analyze the data. The results indicate that managerial ownership has no significant effect on the financial performance of firms while the capital structure has a significant negative effect on the financial performance of the firms. The study recommends that the insurance companies should introduce performance-based remuneration for managers and review the capital structure on a regular basis to ensure that they have the right amount of debt and maintain financial stability.