i Gusau Journal of Accounting and Finance (GUJAF) Vol. 3 Issue 1, April, 2022 ISSN: 2756-665X A Publication of Department of Accounting and Finance, Faculty of Management and Social Sciences, Federal University Gusau, Zamfara State -Nigeria ii © Department of Accounting and Finance Vol. 3 Issue 1 April, 2022 ISSN: 2756-665X A Publication of Department of Accounting and Finance, Faculty of Management and Social Sciences, Federal University Gusau, Zamfara State -Nigeria All Rights reserved Except for academic purposes no part or whole of this publication is allowed to be reproduced, stored in a retrieval system or transmitted in any form or by any means be it mechanical, electrical, photocopying, recording or otherwise, without prior permission of the Copyright owner. Published and Printed by: Ahmadu Bello University Press Limited, Zaria Kaduna State, Nigeria. Tel: 08065949711, 069-879121 e-mail: abupress2013@gmail.com abupress2020@yahoo.com Website: www.abupress.com.ng mailto:abupress2013@gmail.com iii EDITORIAL BOARD Editor-in-Chief: Prof. Shehu Usman Hassan Department of Accounting, Federal University of Kashere, Gombe State. Associate Editor: Dr. Muhammad Mustapha Bagudo Department of Accounting, Ahmadu Bello University Zaria, Kaduna State. Managing Editor: Umar Farouk Abdulkarim Department of Accounting and Finance, Federal University Gusau, Zamfara State. Editorial Board Prof.Ahmad Modu Kumshe Department of Accounting, University of Maiduguri, Borno State. Prof Ugochukwu C. Nzewi Department of Accounting, Paul University Awka, Anambra State. Prof Kabir Tahir Hamid Department of Accounting, Bayero University, Kano, Kano State. Prof. Ekoja B. Ekoja Department of Accounting, University of Jos. Prof. Clifford Ofurum Department of Accounting, University of PortHarcourt, Rivers State. Prof. Ahmad Bello Dogarawa Department of Accounting, Ahmadu Bello University Zaria. Prof. Yusuf. B. Rahman Department of Accounting, Lagos State University, Lagos State. Prof. Suleiman A. S. Aruwa Department of Accounting, Nasarawa State University, Keffi, Nasarawa State. Prof. Muhammad Junaidu Kurawa Department of Accounting, Bayero University Kano, Kano State. Prof. Muhammad Habibu Sabari Department of Accounting, Ahmadu Bello University, Zaria. Prof. Okpanachi Joshua Department of Accounting and Management, Nigerian Defence Academy, Kaduna. iv Prof. Hassan Ibrahim Department of Accounting, IBB University, Lapai, Niger State. Prof. Ifeoma Mary Okwo Department of Accounting, Enugu State University of Science and Technology, Enugu State. Prof. Aminu Isah Department of Accounting, Bayero University, Kano, Kano State. Prof. Ahmadu Bello Department of Accounting, Ahmadu Bello University, Zaria. Prof. Musa Yelwa Abubakar Department of Accounting, Usmanu Danfodiyo University, Sokoto State. Dr. Salisu Abubakar Department of Accounting, Ahmadu Bello University Zaria, Kaduna State. Dr. Isaq Alhaji Samaila Department of Accounting, Bayero University, Kano State. Dr. Fatima Alfa Department of Accounting, University of Maiduguri, Borno State. Dr. Sunusi Sa'ad Ahmad Department of Accounting, Federal University Dutse, Jigawa State. Dr. Nasiru A. Ka’oje Department of Accounting, Usmanu Danfodiyo University Sokoto State. Dr. Aminu Abdullahi Department of Accounting, Usmanu Danfodiyo University Sokoto, State. Dr. Onipe Adebenege Yahaya Department of Accounting, Nigerian Defence Academy, Kaduna State. Dr. Saidu Adamu Department of Accounting, Federal University of Kashere, Gombe State. Dr. Nasiru Yunusa Department of Accounting, Ahmadu Bello University Zaria. Dr. Aisha Nuhu Muhammad Department of Accounting, Ahmadu Bello University Zaria. Dr. Lawal Muhammad Department of Accounting, Ahmadu Bello University Zaria. Dr. Farouk Adeza School of Business and Entrepreneurship, American University of Nigeria, Yola. v Dr. Bashir Umar Farouk Department of Economics, Federal University Gusau, Zamfara State. Dr Emmanuel Omokhuale Department of Mathematics, Federal University Gusau, Zamfara. State ADVISORY BOARD MEMBERS Prof. Kabiru Isah Dandago, Bayero University Kano, Kano State. Prof A M Bashir, Usmanu Danfodiyo University Sokoto, Sokoto State. Prof. Muhammad Tanko, Kaduna State University, Kaduna. Prof. Bayero A M Sabir, Usmanu Danfodiyo University Sokoto, Sokoto State. Prof. Aliyu Sulaiman Kantudu, Bayero University Kano, Kano State. Editorial Secretary Usman Muhammad Adam Department of Accounting and Finance, Federal University Gusau, Zamfara State. vi CALL FOR PAPERS The editorial board of Gusau Journal of Accounting and Finance (GUJAF) is hereby inviting authors to submit their unpublished manuscript for publication. The journal is published in two issues of April and October annually. GUJAF is a double-blind peer reviewed journal published by the Department of Accounting and Finance, Faculty of Management and Social Sciences, Federal University Gusau, Zamfara State Nigeria The Journal accepts papers in all areas of Accounting and Finance for publication which include: Accounting Standards, Accounting Information System, Financial Reporting, Earnings Management, , Auditing and Investigation, Auditing and Standards, Public Sector Accounting and Auditing, Taxation and Revenue Administration, Corporate Governance Issues, Corporate Social Responsibility, Sustainability and Environmental Reporting Issue, Information and Communication Technology Issues, Bankruptcy Prediction, Corporate Finance, Personal Finance, Merger and Acquisitions, Capital Structure, Working Capital Management, Enterprises Risk Management, Entrepreneurship, International Business Accounting and Finance, Banking Crises, Bank’s Profitability, Risk and Insurance Issue, Islamic Finance, Conventional and Islamic Banks and so forth. 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Finally, manuscript should be send to our email address elfarouk105@gmail.com and a copy to our website on journals.gujaf.com.ng http://www.gujaf.com.ng/ vii PUBLICATION PROCEDURE After receiving a manuscript that is within the similarity index threshold, a confirmation email will be send together with a request to pay a review proceeding fee. At this point, the editorial board will take a decision on accepting, rejecting or making a resubmission of the manuscript based on the outcome of the double-blind peer review. Those authors whose manuscript were accepted for publication will be asked to pay a publication fee, after effecting all suggested corrections and changes made on the manuscript. All corrected papers returned within the specified time frame will be published in that issue. PAYMENT DETAILS Bank: FCMB Account Number: 7278465011 Account Name: Gusau Journal of Accounting and Finance FOR INQUIRY The Head, Department of Accounting and Finance, Federal University Gusau, Zamfara State. elfarouk105@gmail.com +2348069393824 FOR MORE INFORMATION, CONTACT The Editor-in-Chief on +2348067766435 The Associate Editor on +2348036057525 OR visit our website on www.gujaf.com.ng or journals.gujaf.com.ng http://www.gujaf.com.ng/ http://www.gujaf.com.ng/ viii CONTENTS Mediating effect of Audit Committee on Board Dynamic and Creative Accounting in Nigerian Firms Abbas Usman PhD, Shehu Usman Hassan PhD 1 Financial Performance of Banks in Selected African Countries: Does Institutional Quality Matter? Toluwa Celestine Oladele PhD, Peters Ade Sanni 22 Firm-Specific Characteristcs and Financial Performance of Listed Agricultural Companies in Nigeria Abdulrazaq T. Jimoh, John A. Attah 33 Effect of Financial Leverage on Stock Returns of Listed Companies in Nigeria Capital Market Abdulrahman Abubakar, Prof. Ahmad Bello, Prof. S. A. Abdullahi, Dr. M. D. Tahir 45 Efficiency of Deposit Money Banks in Nigeria: Data Envelopment Analysis Approach Mayowa Gabriel AJAO, PhD, Lucky Charity OMOREGIE, PhD 57 Credit Appraisal, Collection Policy and Loan Performance of Microfinance Banks in Kwara State, Nigeria Lukman A. O. Abdulrauf 69 Environmental Sustainability Disclosure and Market Value of listed Oil and Gas firms in Nigeria Munir Aliyu Saleh, Sirajo Bappah, Prof. Gbegi Daniel Orsaa, Ibrahim Adamu Saleh PhD 81 Audit Quality, Tenure and Real Earnings Management of Listed Nonfinancial Firms in Nigeria Ahmed Mohammed, Ademu Yahaya, Musa Zakariya 95 Effect of CEO Pay and CEO Power on Risk-Taking of Listed Deposit Money Banks in Nigeria Ismaila Yusuf, Dr. Salisu Abubakar, Dr. Idris Ahmed Aliyu, Dr. (Mrs) Aneitie Charles Dikki 104 Nexus Between Taxation and Foreign Direct Investment in Nigeria Daniel Ayegbeni Ulokoaga, Esther Ikavbo Evbayiro-Osagie (Mrs), Ph. D 115 Working Capital Management and Profitability of Listed Consumer and Industrial Goods Companies in Nigeria Kwasau Ntyak Leah, Samuel Eniola Agbi PhD, Lateef Olumide Mustapha PhD 125 Value Relevance of Earnings and Book Value: A Comparative Analysis Between Big4 and Non-Big4 Audited Listed Firms in Nigeria Abdu Abubakar, Ishaya Luka Chechet PhD, Muazu Saidu Badara PhD, Yunusa Nasiru PhD 136 ix Value Relevance of International Financial Reporting Standard 4 (IFRS 4) of Listed Nigerian Insurance Firms Mariya Mohammed Hafiz, Muhammad Mustapha Bagudo PhD, Salisu Abubakar PhD 145 Determinants of Audit Fees of Listed Insurance Companies in Nigeria Sagir Lawal, PhD, Mohammed Ibrahim, PhD 158 Taxation and Social Services: Evidence from Nigeria ADEGBITE, Tajudeen Adejare, PhD, ABDUSSAMAD, Olarinde 171 Ownership Structure and Financial Performance of Quoted Mortgage Banks in Nigeria Awotundun, D. A., PhD, Jinadu, M. Y. B., Fakunmoju, S. K., PhD. 183 Capital Structure and Profitability of Listed Deposit Money Banks in Nigeria Rahji Ohize Ibrahim, Kamaldeen Ibraheem Nageri, PhD, Abdullai Agbaje Salami, PhD 194 1 OWNERSHIP STRUCTURE AND FINANCIAL PERFORMANCE OF QUOTED MORTGAGE BANKS IN NIGERIA Awotundun, D. A., PhD. Department of Banking and Finance Lagos State University, Ojo Lagos State, Nigeria Jinadu, M. Y. B. Department of Banking and Finance Lagos State University, Ojo Lagos State, Nigeria mybjinadu@gmail.com Fakunmoju, S. K., PhD. Department of Banking and Finance Lagos State University, Ojo Lagos State, Nigeria Abstract The financial performance of mortgage banks worldwide has been a significant source of worry among researchers, professionals, and other stakeholders because of the substantial role mortgage banks play in people’s well-being and economic activity. Despite mortgage bank reforms, the mortgage banking systems in Nigeria are still developing. They remain at a low level of financial performance, poor financing management, and decline in economic performance indicators due to poor ownership structure among mortgage banks in Nigeria. This study examines the effects of ownership structure (significant shareholding, government holding, and minority holding) on financial performance indicators (earnings per share, net profit margin and bank size via total assets) of Nigerian mortgage banks. Ex-post facto research design was employed as well as the panel regression method of analysis, and data was sourced from selected mortgage banks in Nigeria from 2011 to 2020. The study found that ownership structure components (significant shareholding, government holding, and minority holding) have positive and significant effect on financial performance indicators of selected mortgage banks in Nigeria at less than a p<0.05 level of significance. The study concluded that ownership structure components affect financial performance indicators of selected mortgage banks in Nigeria. Therefore, the study recommended that there is a need for mortgage banks in Nigeria to increase their ownership structure in terms of significant shareholding, government holding, and minority holding), as it was found that ownership structure absolutely affects the financial performance indicators of mortgage banks quoted in Nigeria. Keywords: Financial Performance, Government Holding, Significant Shareholding, and Minority Holding 1. Introduction The financial performance of mortgage banks across the globe has been a significant concern among scholars, professionals, and other stakeholders due to the substantial contribution mortgage banks play in the well-being of citizens and economic activities. Mortgage banks offer loans to clients to them purchase real estate properties. However, the dearth of housing stock, both in number and quality/ functionality, abound virtually in every country, mainly in developing countries vary from one country to another hence creating challenges in achieving mailto:mybjinadu@gmail.com 2 sound and targeted financial performance among mortgage banks (Kim, Laufer, Pence, Stanton, & Wallace, 2018). Globally, among developed, developing, and emerging economies, Goodman, Parrott, Ryan, and Zandi (2020) stated that most accounts of the late- 2000s housing and mortgage market meltdown blame it on falling house prices, lax underwriting, and other factors that resulted in credit losses in the mortgage system thus created uncontrollable challenges on financial performance indicators in the mortgage banking industry. Financial Crisis Inquiry Commission (2021) asserted that the collapse of mortgage banks was fueled by continuous decline in economic performance indicators, low- interest rates, accessible and abundant credit, inadequate regulation, and toxic mortgages, creating a full-fledged crisis in the mortgage banking industry. Developed countries like the United States of America, the United Kingdom, Belgium, France, among others, mortgage banks financial performance indicators were characterized with challenges of unstable and fast decline on total assets, net profit, and return on equity due to the availability of long-term funds that align with the period required for the mortgage loans, low earning income when compared to the price of houses leading to a high level of affordability (Mortgage Metrics Report, 2021). Likewise, in developing countries such as Ghana, Nigeria, Cameroon, South Africa, among others, mortgage banks were faced with similar challenges such as low saving culture, poor saving mobilization mechanism, meager long-term funds to fit with mortgage loan duration, low incomes, inadequate access to construction financing, lopsided ownership structure (African Development Bank Report, 2021). These challenges have resulted in unstable financial performance indicators among mortgage banks in developing countries. Dakhlallhi, Rashi, Amalina, Abdullah, and Dakhlallh (2021) argued that ownership structure is a governance tool that assists stakeholders in aligning their priorities with company goals (Blair & Stout, 2017). The ownership structure is the property claims made by managers and investors who have no direct link with the company's management. Furthermore, previous studies found ownership structure to be vital aspect of corporate governance frameworks and fundamental corporate governance processes (Loay, Jamal, & Mah'd, 2018). The incompatibility of interests between management and shareholders, particularly between majority and minority shareholders, is one of the issues that existing companies face (Mang'unyi, 2011). This inconsistency comes at a price known as the cost of agency (Aguilera, Judge, & Terjesen, 2018). However, ownership structure does not only focus on the business owners, but also takes into consideration liability, control, tax and profit sharing. This implies that the issue of ownership regardless of the ownership style (private, government or public) is important in mortgage banking firms. Enyia and Udungeri (2018) pointed out that mortgage banks, whether owned by private or government, are characterized with partial ownership in Nigeria, which created challenges in achieving targeted financial performance indicators. Despite the regulatory reform in Nigeria's mortgage banking industry, there are still several issues such as bias ownership concentration, weak corporate governance, and maladministration; thus, wine down targeted financial performance indicators in the mortgage banking industry (Oluba, 2020). In the light of the above discussion, ownership structure has been a source of concern to both the Nigerian government and private stakeholders of Nigerian mortgage banks. Despite existing regulations enacted by government on credit management and considerable banking reforms in the mortgage industry in Nigeria, there exist biased ownership structure mechanism and poor credit management of mortgage banks leading to the reduced financial performance and low return on assets in the past couple of years (Usunobun & Omoghosa, 2019). 3 Though several studies such as Dakhlallh et al. (2020), Jarbou, Abu-Serdaneh, and Latif Mahd (2018), Kao, Hodgkinson, and Jaafar (2019), Koehn and Santomero (2019), Muthoni and Nasieku (2018), and Ng’ang’a (2017) have examined how ownership structure has impacted on the performance of banking firms. These past studies employed ownership concentration, domestic ownership, and foreign ownership as proxied for ownership structures. Still, they failed to consider how significant shareholding, government holding, and minority holding as proxied for ownership structure affect financial performance indicators (earnings per share, net profit margin and bank size via total assets) of mortgage banks in Nigeria. Thus, there exist gap in the literature especially within Nigeria context that this study intended to fill. The main objective of the study is to examined the effect of ownership structure on financial performance of selected mortgage banks quoted in Nigeria while the specific objectives are to; i. Examine the effect of ownership structure components (significant shareholding, government shareholding, and minority shareholding) on earning per share of mortgage banks quoted in Nigeria; ii. Determine the effect of ownership structure components (significant shareholding, government shareholding, and minority shareholding) on net profit margin of mortgage banks quoted in Nigeria; and iii. Investigate the effect of ownership structure components (significant shareholding, government shareholding, and minority shareholding) on bank size (total assets) of mortgage banks quoted in Nigeria Considering the gap aforementioned, the study hypothesized that; H01: There is no significant effect of ownership structure components (significant shareholding, government shareholding, and minority shareholding) on earning per share of mortgage banks quoted in Nigeria H02: There is no significant effect of ownership structure components on the net profit margin of mortgage banks quoted in Nigeria H03: There is no significant effect of ownership structure components on the bank size (total assets) of mortgage banks quoted in Nigeria 2. Literature Review Discussed within this section is the conceptual review, theoretical framework, and empirical review of literature related to the present study. Ownership structure, according to Gichohi (2018), is a structure that defines the shareholders and their various categories. Ng’ang’a (2017) defined ownership structure in relation to the decision-making capability of an organization as well as equity distribution in terms of votes and capital. It is the argument of Tanui, Yegon, and Bonuke (2019) that ownership structure is vital in shaping an organizations’ corporate governance system. Thus, the study conceptualized ownership structure as significant shareholding, government holding, and minority holding. Financial performance can be conceptualized as an organization’s to be efficient in its operations survive and grow in the aspect of operating income, retained earnings, shareholders’ funds, return on assets, and profit before tax. The present study measures mortgage bank financial performance using earnings per share, net profit margin and total assets (bank size). 4 Theoretical Framework The study anchored on stakeholder theory; as the perspective of stakeholder approach was first introduced into the management theory as an answer to dissatisfaction with the unilateral financial criteria of effectiveness in corporate governance and firm performance. It is rooted in the work of Richard Freeman in 1984. A stakeholder is defined as ‘any group or individual who can affect or is affected by the achievement of the organization’s objectives’ (Freeman, 1984). The main assumption of the stakeholder theory is that an organization’s effectiveness is measured by its ability to satisfy not only the shareholders, but also those agents who have a stake in the organization and so as to achieve firm financial performance (Freeman, 1984). For the stakeholder theory, the primary criticism is that it fails to deal with the problem of balancing the potential conflicting interests of all different constituencies. Even so, there is no way for the stakeholders to claim for any failure on the part of the directors. Shareholders are no doubt, an important constituent and profits are a critical feature of this activity, but concern for profits is the result rather than the driver in the process of value creation (Rahid, 2020). Empirical Review and Gap in the Literature The link between ownership structure and organizational performance have been examined in various contexts. Among past related studies, Asri (2017) examined the impact of ownership structure comprising of institutional ownership and administrative ownership, on wage quality and firm value while San Martin-Reyna (2018) and Rashid (2020) examined the impact of ownership composition on profit management. Both studies found that institutional ownership and management ownership positively affect firm value. Maswadeh (2018) investigated the impact of ownership structure consisting of concentration ownership, institutional ownership, and foreign ownership in terms of credit rating and company size as controlling variables on earning management in Jordanian industrial companies. A significant impact of concentration ownership was found in minimizing earnings management processes. Similarly, no significant impact was found of institutional ownership on foreign ownership in earnings management practices in Jordanian industrial companies. Saona, Muro, and Alvarado (2020) in their study assessed how ownership structure and the characteristics of the board of directors affect earnings management. It was found that ownership structure and board of directors had a significant impact on earnings management. Hanan, Xiaoyan, and Muhammad (2016) show that board size negatively affected firm performance. it was further revealed that board independence significantly impacted on performance as measured by return on equity, invested capital, and Tobin's Q). Abdolreza (2016) and Oyerinde (2014) conducted a study which showed sales growth to be positively correlated with all indicators of value creation. However, revenue growth was positively associated with the return on assets. Positive relationship was found between economic value added and CEO duality. No correlation was found between the market value-added and Jensen's alpha and all indicators of corporate governance. A negative and significant relationship was further found between return on assets and the auditor's time, while the return on equity was negatively correlated with the auditor's time and the change of CEO. Mwanzia and Ochanda (2017) assessed the relationship between the economy, the market, and cash value added as value-based performance indicators and corporate governance. The results revealed that ownership concentration was found to have a significant relationship with economic and cash value-added, while internal ownership was revealed not to be a significant factor in growth performance. Furthermore, external ownership was found to increase economic value-added and declined market value-added. 5 Despite various empirical studies reviewed, no study to the best of researcher’s knowledge employed significant shareholding, government shareholding, and minority shareholding as measures or components or proxied for ownership structure and their aggregate effect such as (significant shareholding, government shareholding, and minority shareholding ) on each financial performance indicators like earning per share, net profit margin and bank growth (total assets) of quoted mortgage banks in Nigeria. Thus, there exists an empirical gap to fill. 3. Methodology The study employed ex-post facto research design within the study variables from 2011 to 2020. The study population comprised of 33 mortgage banks, and 12 mortgage banks were selected due to availability of data and they listed in Nigeria stock market. The study employed panel regression method of analysis and used Hausman test for the selection of either fixed, random or pooled panel regression models. The measures adopted for the variables and their respective apriori expectations are presented on the table 1 below: Table 1: Measurement of Variable Variables Proxied Measurement Apriori Expectation Ownership Structure Significant Shareholding (SSH) Between 1-5 holders +/- Ownership Structure Government Holding (GH) Private-zero holding Govt – Between -50%- 80% +/- Ownership Structure Minority Holding (MH) Less than 20% +/- Financial performance Earnings Per Share (EPS) (Net income - preferred dividends) ÷ average outstanding common shares Financial performance Net Profit Margin (NPM) Divide net income by total revenue and multiplied by 100 Financial performance Bank Size (BS) Total Assets Source: Authors’ Computation (2022) Model Specification Two variables were identified in this study, independent and dependent variables. Based on the variables the following models were proposed: Y = Dependent Variable (i.e. Financial Performance (FP) measured by (y1, y2, y3) X = Independent Variable (i.e. Ownership Structure (OS) measured by (x1, x2, x3) Where; y1= Earnings Per Share (EPS) y2= Net Profit Margin (NPM) y3 = Bank Size (BS) x1 = Significant Shareholding (SSH) x2 = Government Shareholding (GH) x3= Minority Shareholding (MH) β0 = constant 6 β1- β3 = coefficient εit = panel regression model The apriori expectations will be β1>0, β2>0, β3>0 Hypothesis One EPS = f(SSHit, GHit, MHit) EPSit = β0 + β1SSHit+ β2GHit + β3MHit +µi + εit ------------------------Equation 1 Hypothesis Two NPM = f(SSHit, GHit, MHit) NPMit = β0 + β1SSHit+ β2GHit + β3MHit +µi + εit -----------------------Equation 2 Hypothesis Three BS = f(SSHit, GHit, MHit) BSit = β0+ β1SSHit+ β2GHit + β4MHit +µi + εit- ------------------------ Equation 3 4. Analysis and Interpretation Table 2: Descriptive Statistics SSH GH MH EPS NPM BS Mean 15.2298 1.97209 32.13897 7.02465 15.09138 27.2417 Median 6.875488 6.527562 27.865672 2.445641 7.908765 13.85945 Maximum 3104.0 5.134 153.9 70.45 38.38376 28.07476 Minimum 697.6 0.760 7.63 7.26 8.701209 16.54382 Std. Dev. 752.3 1.452 44.21 16.5 6.083109 4.073292 Skewness 2.865590 4.245760 4.234575 0.821340 2.876541 1.943249 kurtosis 11.81121 19.03515 18.97404 3.302873 6.9451209 3.732919 Jarque-Bera 5.87987 10.29516 35.89709 123.61205 95.85289 5.352289 Probability 0.090987 0.061980 0.298763 0.295029 0.010094 0.00326 Obs 120 120 120 120 120 120 Source: Authors’ Computation (2022) The probability of the Jarque-Bera shows that the data for the study variables such as significant shareholding (SSH), government holding (GH), earnings per share (EPS), and minority holding (MH) are normally distributed except for Net Profit Margin (NPF) and Bank Size (BS) since the probability value for Jarque-bera is less than 5% unlike SSH, GH, EPS, and MH. Table 3: Correlation Coefficients for Multicollinearity Test Variables SSH GH MH Variance Inflation Factor (VIF) SSH 1 1.76 GH 0.155 1 1.82 MH -0.350 0.341 1 1.13 Source: Authors’ Computation (2022) 7 Table 3 indicates that the correlation coefficients of the relationship among the explanatory variables are quite below the rule of thumb threshold of 0.8. This implies that including these explanatory variables in the same model will not cause a problem of severe multicollinearity. Table 4: Panel Result Table for Hypothesis One Variables Fixed Effect (FE) Random Effect (RE) Pooled Regression (PR) SSH 1.717 (0.326) [2.546] {0.032}** 0.011 (0.126) [0.032] {0.933} 3.024 (1.094) [3.216] {0.010}** GH -0.610 (0.317) [-4.521] {0.060}*** 0.019 (0.089) [0.021] {0.826} 0.032 (1.046) [0.103] {0.482} MS -0.741 (0.361) [-2.189] {0.045}** -0.096 (0.223) [-0.021] {0.664} -0.149 (2.158) [-0.298] {0.349} Constant 75.677 (36.942) [3.532] {0.046}** -3.471 (13.66) [-0.032] {0.799} -1.440 (2.846) [-0.243] {0.884} Breusch-Pagan (Lagrange Multiplier) (LM) Test χ 2 (1) = 37.72 (0.0010) χ 2 (1) = 5.46 (0.0097) 2 (1) = 114.53 (0.0021) Hausman Test χ2(3) = 29.18 (0.0152) χ2(3) = 27.30 (0.0365) χ2(3) = 113.60 (0.0063) F-Test F(3,116) = 23.14 Wald chi2(3) = 5.54 F(3,116) = 9.62 Pesaran Cross-sectional Dependence (CD) 1.368 (p>5% = 0.735) N 120 120 120 Ajd-R 2 0.42 0.18 0.21 Dependent Variable: Earning Per Share (EPS) Notes: FE, RE and PR represent Fixed Effect Panel Regression, Random Effect Panel Regression and Pooled Regression; Standard errors ( ), t-statistic [ ] and p-value { } are reported in parentheses. *, ** and *** show the 10%, 5% and 1% significance level respectively.” Where; Significant Shareholding (SSH), Government Holding (GH), and Minority Holding (MH) Table 4 shows the results for model 1 for hypothesis one. The study adopted fixed effect (FE) panel regression, as Government Shareholding (GH) and Minority shareholding (MH) have negative and significantly affect Earning Per Share (EPS) while Significant Shareholding (SSH) has positive but insignificantly affect EPS of selected mortgage banks in Nigeria. Thus, this study rejected null hypothesis one. Table 5: Panel Result Table for Hypothesis Two Variables Fixed Effect (FE) Random Effect (RE) Pooled Regression (PR) SHH 1.217 0.616 0.838 (0.499) (0.198) (0.111) [4.321] [3.278] [2.934] 8 {0.018}** {0.002}*** {0.050}** GH -1.338 0.323 -0.177 (0.478) (0.147) (0.073) [-3.221] [2.983] [-3.215] {0.087}* {0.028)** {0.069}* MS -1.678 1.405 -1.250 (0.534) (0.325) (0.207) [-5.732] [4.032] [-4.110] {0.093}* {0.000}*** {0.048}** Constant 176.26 96.47 102.886 (54.42) (19.40) (9.190) [2.156] [0.021] [1.821] {0.002)*** {0.910} {0.036}** Breusch-Pagan (LM) Test χ 2 (1) = 12.63 χ 2 (1) = 14.78 χ 2 (1) = 22.94 (0.0331) (0.0017) {0.0002) Hausman Test χ2(3) = 1.75 χ2(3) = 4.98 χ2(3) = 2.94 (0.6732) (0.3671) (0.1063) F-Test F(3,116) = 36.89 Wald chi2(3) = 22.58 F(3,116) = 18.73 Pesaran CD 0.358 (p<5% = 0.231) N 120 120 120 Ajd-R 2 0.314 0.518 0.652 Dependent Variable: Net Profit Margin (NPM) Notes: FE, RE and PR represent Fixed Effect Panel Regression, Random Effect Panel Regression and Pooled Regression; Standard errors ( ), t-statistic [ ] and p-value { } are reported in parentheses. *, ** and *** show the 10%, 5% and 1% significance level respectively.” Where; Significant Shareholding (SSH), Government Holding (GH), and Minority Holding (MH) Table 5 shows that the random effect model is suitable for this analysis representing model two for hypothesis two. In this study, Government Shareholding (GH) and Minority shareholding (MH) have negative and significantly affect Net Profit Margin (NPM). In contrast, Significant Shareholding (SSH) has a positive but insignificantly affected NPM of selected mortgage banks in Nigeria. Thus null hypothesis two rejected. Table 6: Panel Result Table for Hypothesis Three Variables Fixed Effect (FE) Random Effect (RE) Pooled Regression (PR) SSH 5.450 6.721 3.732 9 (1.030) (1.155) (1.057) [6.342] [3.753] [4.964] {0.007}*** {0.001}** {0.002}*** GH 3.060 -1.13 -1.136 (1.040) (4.546) (9.967) [7.352] [-0.021] [-0.229] {0.030}** {0.910} {0.910} 5.570 7.44 7.447 (1.570) (3.46) (3.469) [3.452] [2.012] [3.211] {0.013}** {0.031}** {0.036}** Constant 2.021 -6.253 -6.252 (9.751) (2.159) (2.159) [0.032] [-2.971] [-4.921] {0.837} {0.004} {0.005} Breusch-Pagan(LM) Test χ 2 (1) = 17.63 χ 2 (1) = 12.74 χ 2 (1) = 14.894 (0.064) (0.073) (0.0221) Hausman Test χ2(3) = 65.02 χ2(3) = 45.89 χ2(3) = 97.36 (0.0002) (0.0015) (0.0201) F-Test F(3,116) =89.61 Wald chi2(3) = 22.87 F(3,116) = 15.72 Pesaran CD 0.828 (P>5% = 0.391) N 120 120 120 Adj-R 2 0.523 0.509 0.255 Dependent Variable: Bank Size (BS) Notes: FE, RE and PR represent Fixed Effect Panel Regression, Random Effect Panel Regression and Pooled Regression; Standard errors ( ), t-statistic [ ] and p-value { } are reported in parentheses. *, ** and *** show the 10%, 5% and 1% significance level respectively.” .” Where; Significant Shareholding (SSH), Government Holding (GH), and Minority Holding (MH) Table 6 shows that this study adopted fixed effect (FE) panel regression, as Significant Shareholding (SSH), Government Holding (GH), and Minority Holding (MH) have positive and significant impact Bank Size measure with Total Assets (TA). Thus null hypothesis three rejected. 5. Conclusion and Recommendation This study focused on ownership structure proxies (significant shareholding, government holding, and minority holding) on mortgage bank financial performance indicators such as 10 (earnings per share, net profit margin and bank size via total assets). The study concluded that ownership structure components (significant shareholding, government holding, and minority holding) affect financial performance indicators in Nigeria. This indicated that ownership structure dimensions such as significant shareholding, government holding, and minority holding play major and vital role in improving financial performance measure like earnings per share, net profit margin and bank size via total assets n among quoted mortgage banks in Nigeria. From the finding, this study recommends that; (i) It is essential for mortgage banks in Nigeria to increase their ownership structure in terms of (significant shareholding, government holding, and minority holding) in order to enhanced earning per share, as it was found that ownership structure certainly significantly improve affects earning per share of quoted mortgage banks in Nigeria; (ii) Regulators of mortgage banks in Nigeria should enforce management of both private and government institutions mortgage to embrace significant shareholding, government holding, and minority holding in their ownership structure so as to boost and achieve targeted net profit margin in the Nigerian mortgage banking industry; and (iii) Government should inculcate the habit of private and government shareholding in the drive of ownership structure of mortgage in Nigeria which in turn increase mortgage bank size in Nigeria. References Abdolreza, G. (2016). 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