Faculty of Administration

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Browsing Faculty of Administration by Author "Akeem, Babatunde Muritala."

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    Ownership structure, managerial optimism and investment efficiency of deposit money banks in Nigeria (2006 - 2021)
    (department of Management and Accounting, Obafemi Awolowo University, Ile-Ife., 2024) Akeem, Babatunde Muritala.
    This study examined the extent of ownership structure and investment efficiency among deposit money banks (DMBs) in Nigeria and determined the joint effect of ownership structure and managerial optimism on the investment efficiency of the DMBs. It also evaluated the mediating effect of managerial optimism on the relationship between ownership structure and investment efficiency of DMBs in Nigeria and tested the optimal levels at which ownership structure and managerial optimism affect the investment efficiency of the DMBs in Nigeria. These were with a view to providing information that could enhance investment efficiency of DMBs in Nigeria. The study adopted a longitudinal research design. Secondary data were used for the study. The population consisted of 24 DMBs in Nigeria. The sample for the study consisted of 12 DMBs selected using purposive sampling techniques on the basis that they must have been listed by the Nigerian Exchange Group (NGX) before 2006 and their shares actively traded on the NGX during the study period. Data were collected for the period 2006-2021 from the audited financial statements of the deposit money banks and the Nigerian Exchange Group Factbook. The rationale for using 2006 as the base year was a result of bank recapitalisation and consolidation exercise by the Central Bank of Nigeria. Data obtained were analysed using mean, standard deviation, Ordinary Least Squares Multiple Regression and Threshold Panel Regression. The results revealed that the extent of investment efficiency (𝑥̅ = 0.004) and ownership structure using the proxy of institutional shareholding (𝑥̅= 0.020), block holder shareholding (𝑥̅= 0.005) and managerial shareholding (𝑥̅= 0.050) were low among DMBs. The results also showed that ownership structure and managerial optimism (t = 0.500; p > 0.05) had significant joint effect on the investment efficiency of DMBs in Nigeria. Furthermore, the result revealed that managerial optimism (t = 0.95, p < 0.05) had a positive but not significant mediating effect on the relationship subsisting between ownership structure and investment efficiency of DMBs in Nigeria. Finally, the optimal levels at which ownership structure and managerial optimism affect the investment efficiency of DMBs in Nigeria were 49%, 71.4% and 3% for institutional ownership, block holder shareholding and managerial shareholding respectively. The study concluded that ownership structure and managerial optimism enhanced investment efficiency of deposit money banks in Nigeria