Institutional and Concentrated Ownership Effect on Financial Performance of Listed Non-Financial Companies in Nigeria: Moderated by Environmental Sustainability Reporting

This study examined the effect of institutional and concentrated ownership on the financial performance of listed non-financial companies in Nigeria, with environmental sustainability reporting as a moderating variable. A sample of 61 listed non-financial companies was selected through stratified random sampling technique from a population of 107. Secondary data was gathered from annual reports of the sampled companies from 2011 to 2023, and the analysis was conducted using multiple regression via STATA 18 statistical software. The results indicated that while concentrated ownership had a significant effect on financial performance, institutional ownership had an insignificant effect on financial performance as measured by return on assets (ROA). Furthermore, the moderating effect of environmental sustainability reporting on these relationships was found to be insignificant. However, results revealed that environmental sustainability reporting has a significant effect on financial performance. Findings revealed that having more concentrated investors in the ownership structure of the sampled firms can enhance financial performance. Findings also revealed that environmental disclosures enhances financial performance but does not moderate the effect of institutional and concentrated ownership on financial performance. Therefore, this study recommends that regulatory authorities such as the Financial Reporting Council of Nigeria should make sustainability reporting mandatory to improve transparency and accountability. Furthermore, non-financial companies should attract more concentrated investors to provide effective monitoring of management for enhanced financial performance.