EFFECT OF OWNERSHIP STRUCTURE ON EMPLOYEE COMPENSATION: EVIDENCE FROM LISTED MANUFACTURING FIRMS IN NIGERIA

This study examined ownership structure and employee compensation. The objective of the study is to examine the effect of institutional ownership, managerial ownership and foreign ownership on employee compensation. The empirical research design was employed in the collection of secondary data from listed manufacturing firms in the Nigeria Exchange Group for the period of 2016 to 2022, and analysed using descriptive statistics, correlation and ordinary least square regression. The regression results revealed that institutional ownership had a significant positive relationship with employee compensation at 1% level of significance. Managerial ownership had a significant positive relationship with employee compensation at 1% level of significance, and foreign ownership had a significant positive relationship with employee compensation at 1% level of significance. The study recommended that manufacturing firms should place more effort in rewarding compensation in relation to ownership change, and creating enabling positive feedback in our business environment.