Effect of Capital and Ownership Structure on Financial Performance of Listed Information and Communication Technology Firms in Nigeria

Abstract: The study examines how different types of capital ownership affect the financial performance of publicly traded IT companies. The study also examined the relationships and effects among the selected variables. The study looked at the firm's debt-to-equity ratio, total debt-to-asset ratio, long-term debt-to-asset ratio, and short-term debt ratio. The firm's financial performance was the dependent variable. It also looked at managerial, institutional, and foreign ownership. We considered an ex-post facto research design appropriate for the study, which focused on the ten years' annual financial reports of the listed information and communication technology firms (2014-2023). The data analysis employed the multiple regression technique, panel data analysis with fixed effects, random effects, and pooled ordinary least square models. It was found that the capital and ownership structure of listed ICT companies in Nigeria have a big impact on their financial performance (FV=18.20, P<0.05; FV=7.9571, P<0.05; FV=11.7298, P<0.05; FV=12.852, P<0.05). The study concluded that capital and ownership structures are potent factors affecting the financial performance of listed ICT firms in Nigeria. The study suggests that listed ICT companies should let managers buy shares. This will encourage them to carefully handle debt to lower risks and use debt capital wisely in projects that will improve the business's long-term value and financial performance.

Capital structure, ownership structure, financial performance, Debt/Equity, Total debt, Long term debt, short term debt

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