Research Article

Effect of Ownership Structure on the Financial Reporting Quality by Quoted Insurance Companies in Nigeria

JANET ONAYI1*, Dr. Nyahas Samson Iliya1
1 Department of Accounting, University of Jos
* Corresponding author: janetonayi@gmail.com
Published: Jul, 2026
DOI: 10.67862/nahj.2026.1obnkm0x
Pages: 190-206

Abstract

Abstract This study investigates the effect of ownership structures on financial reporting quality of insurance firm in Nigeria, focusing on management ownership, institutional ownership and ownership concentration. The primary objective is to examine the effect of ownership structure on the quality of financial reporting using the Generalized Method of Moments approach. A sample of 100 observations was analyzed to assess the significance of each ownership structure in relation to the financial reporting quality. The results reveal significant positive effect of management ownership, institutional ownership and ownership concentration on financial reporting quality of insurance firm in Nigeria, suggesting that these ownership structures play a critical role in improving governance and reducing agency costs. The findings align with Agency Theory and Stewardship Theory, highlighting how effective ownership structures can align the interests of management, institutional investors, and shareholders, ultimately enhancing financial reporting quality. Based on these findings, it was recommended that there is need to encourage increased management ownership to align management's interests with those of shareholders, promote institutional ownership to leverage the monitoring capabilities of institutional investors, and carefully manage ownership concentration to balance the benefits of monitoring with the risks of shareholder entrenchment. These recommendations provide actionable insights for firms looking to improve governance and financial reporting quality through strategic ownership structures.

Keywords

Management Ownership Institutional Ownership Ownership Concentration Financial Reporting Corporate Governance

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How to Cite

ONAYI, J., & Iliya, D. N. S. (2026). Effect of Ownership Structure on the Financial Reporting Quality by Quoted Insurance Companies in Nigeria. Nigerian Accounting Horizon Journal, 11(1), 190-206. https://doi.org/10.67862/nahj.2026.1obnkm0x

J. ONAYI, and D. N. S. Iliya, "Effect of Ownership Structure on the Financial Reporting Quality by Quoted Insurance Companies in Nigeria," Nigerian Accounting Horizon Journal, vol. 11, no. 1, pp. 190-206, July 2026. doi: 10.67862/nahj.2026.1obnkm0x

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